Stockholm-based Ericsson will partner with T-Mobile in a $3.5 billion deal to help the U.S. telecommunications firm deploy its 5G wireless network, the companies said Tuesday.
The partnership comes as Chinese and U.S. businesses rush to launch the fifth-generation wireless technology, which will supply cellular connections with speed and power previously available only through hardwired connections or WiFi networks. T-Mobile, the nation’s third-largest carrier, aims to introduce the network in 30 cities in 2018.
The Ericsson deal follows a separate equipment agreement in July between the Bellevue, Wash.-based carrier and Nokia, also valued at $3.5 billion. T-Mobile is simultaneously awaiting federal approval for its merger with Sprint, a deal the companies say will allow the two firms to have the most robust 5G network available.