News24

T-Mobile picks Ericsson, Nokia Siemens

2012-05-08 20:05

New Orleans - T-Mobile USA on Tuesday said that Nokia Siemens Networks and LM Ericsson AB will supply the network equipment for its new wireless broadband network in the US, a project worth $4bn.

T-Mobile is commissioning a "4G LTE" network, the same technology used by Verizon Wireless and AT&T Inc for their high-speed networks. It will use, in part, radio frequencies handed over by AT&T after the bigger company backed off its deal to buy T-Mobile due to opposition from government regulators.

In addition to handing over spectrum licenses, AT&T gave T-Mobile $3bn in cash, which will help finance the upgrade. T-Mobile plans to have the network live next year, covering 75%t of the 25 largest cities in the US.

Sweden's Ericsson is one of the main suppliers for the LTE networks of Verizon Wireless, AT&T and Sprint Nextel Corp, along with Alcatel-Lucent SA of France.

For Nokia Siemens Networks, a joint venture of Finland's Nokia Corp. and Siemens AG of Germany, the T-Mobile order represents a new chance to get into the US market for network equipment.

It got a $7bn order from Harbinger Capital, a hedge fund, to build a network for its start-up, LightSquared, but that project appears moribund because regulators concluded it would have interfered with GPS navigation.

T-Mobile USA is making the announcement on the first day of CTIA Wireless, the US cellphone industry trade show, in New Orleans.

The company is the fourth-largest wireless carrier in the US, with 33.2 million devices on its network. It's a subsidiary of Deutsche Telekom AG of Germany.