AT&T, as part of plans to lead the United States in commercial scale open RAN deployments, is teaming up with Ericsson to further the telecommunications industry efforts and help build a more robust ecosystem of network infrastructure providers and suppliers. AT&T’s spend could approach roughly $14 billion over the 5-year term of the contract with Ericsson.
AT&T’s Open RAN plan is for 70% of its wireless network traffic to flow across open-capable platforms by late 2026. The company expects to have fully integrated open RAN sites operating in coordination with Ericsson and Fujitsu, starting in 2024. This move away from closed proprietary interfaces will enable rapid scaling and management of mixed supplier hardware at each cell site. Beginning in 2025, the company will scale this Open RAN environment throughout its wireless network in coordination with multiple suppliers such as Corning Incorporated, Dell Technologies, Ericsson, Fujitsu, and Intel.
Ericsson will leverage its USA 5G Smart Factory in Lewisville, Texas in the manufacture of 5G equipment for this contract. AT&T will use this new collaboration with Ericsson to enhance its wireless network in North America and expand its 5G network. The expected spend under the Ericsson contract is below what the company expects to spend for wireless capital expenditure over the next 5 years.
Chris Sambar, Executive Vice President, AT&T Network
AT&T is taking the lead in open platform sourcing in our wireless network. With this collaboration, we will open up radio access networks, drive innovation, spur competition and connect more Americans with 5G and fiber. We are pleased that Ericsson shares our support for Open RAN and the possibilities this creates for American digital infrastructure.
Börje Ekholm, President and CEO, Ericsson
High-performance and differentiated networks will be the foundation for the next step in digitalization. I am excited about this future and happy to see our long-term partner, AT&T, choosing Ericsson for this strategic industry shift – moving to open, cloud-based and programmable networks. Through this shift, and with open interfaces and open APIs, the industry will see new performance-based business models, creating new ways for operators to monetize the network. We are truly proud to be partnering with AT&T in the industrialization of Open RAN and help accelerate digital transformation in the U.S.
