The first-ever large contract for construction of a 5G network is signed

On July 30, 2018 it became known of the conclusion of the first-ever large contract for construction of networks of fifth generation (5G). The American operator T-Mobile of US entering into the German holding Deutsche Telekom agreed about purchase of the corresponding telecommunication equipment of Nokia.

The cost of the transaction is $3.5 billion. The contract is expected several years and assumes that Nokia will supply to the customer not only the equipment, but also the different technologies and  the software necessary for start of a national 5G network. In particular, it is about the solution for the systems of a radio access of the next generation AirScale Radio Access Nokia and devices having access to cloud services.

The first-ever large contract for construction of a 5G network is signed

The marketing vice president in division of Mobile Networks Nokia Phil Twist called the transaction with T-Mobile of US of one of the biggest in the history of the Finnish company.

It accurately designates and concretizes that the 5G comes to the market — he noted.

Within construction of a 5G networks in densely populated urban areas of T-Mobile of US will use the licensed frequencies in the range of 600 MHz and a high-speed range 28 MHz. Capacity of network and information transmission rate depend on width of a range and the range is lower, the it is less than opportunities of application of a broadband signal.

It is expected that at first the 5G network of T-Mobile of US will earn in New York, Los Angeles, Dallas and Las Vegas at the beginning of 2019.

As notes Reuters news agency, the contract with T-Mobile of US is extremely important for Nokia company on which financial results several years pressed decrease in demand for the equipment for 4G-networks and also doubts of investors that contracts for transition to a 5G will be able to increase profitability of the company. After the declaration of the transaction with T-Mobile of the US stock of the Finnish company rose in price for 2.5%.^[1]

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