• 4 days The New World Tax Order
  • 5 days Is Crypto Finally Ready To Pay The Piper?
  • 6 days Is It Time To Buy The Global Gaming Market Dip?
  • 9 days Even The Mafia Has A Millennial Problem
  • 11 days Zuckerberg Loses Billions in Social Media Outage
  • 12 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 13 days US Retail Has A Major Supply Chain Problem
  • 16 days China Has Set Out To Crush Crypto...Again
  • 17 days Top Performing Cannabis Stocks of the Year
  • 18 days Millennials Could Power A 20-Year Bull Stock Market
  • 24 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 25 days 3 Restaurant Stocks In Full Recovery Mode
  • 25 days Bitcoin Is Driven By Testosterone
  • 30 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 31 days How To Invest In The Cybersecurity Boom
  • 33 days Investors Are Patient With Unprofitable Giants
  • 35 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 37 days 5 Stocks To Keep A Close Eye On This Year
  • 38 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 39 days Central America Is Ready For The Bitcoin Hustle
Apple Stocks Falls After Blowout Earnings Report

Apple Stocks Falls After Blowout Earnings Report

Yet despite what is clearly…

The Biggest Problem In The Cashless Revolution

The Biggest Problem In The Cashless Revolution

There's a glaring problem in…

Drone Deliveries Just In Time For Christmas

Drone Deliveries Just In Time For Christmas

Drone deliveries were once just…

Michael Scott

Michael Scott

Writer, Safehaven.com

Michael Scott majored in International Business at San Francisco State University and University of Economics, Prague. He is now working as a news editor for…

Contact Author

  1. Home
  2. Tech
  3. Consumer Electronics

T-Mobile, Nokia Up Ante for 5G In $3.5B Deal

Telecom1

The promise of next-gen 5G communications networks got a major boost on Monday with the announcement of the first-ever deal in the sphere, as T-Mobile awarded Nokia a contract for $3.5 billion in network gear.

It’s been a long time in coming, and while the rivalry among telecoms giants has been heated—verbally—the specter of actually making it happen has lacked concrete action.

For Nokia, the deal will give investors a major boost of confidence that it will be able to pull out some more profitability this year.

Nokia shares closed up 1.85 percent Monday, while T-Mobile shares were up 0.35 percent at the close. But at the open Tuesday, Nokia wasn’t gaining any traction at all:

(Click to enlarge)

The timing for Nokia couldn’t have been more urgent. Just last week it’s shares plunged when it told investors that customers aren’t ready to spend more for faster networks, and in fact are demanding price cuts, Bloomberg reported. And a Q2 earnings miss certainly didn’t help, with operating profits plunging 42 percent. But with the new deal in place, Nokia is eyeing a much better second of half—investors aren’t indicating, yet, that this has boosted confidence. Related: Housing Sales Are Slowing As Buyers Get Priced Out

For T-Mobile, it’s a major feather in the cap at a time when the war of words with competitors over who’s going to cross the 5G finish line first—and what that actually means—has reached fever pitch.

"We are all in on 5G," T-Mobile CTO Neville Ray said in a statement. "Every dollar we spend is a 5G dollar, and our agreement with Nokia underscores the kind of investment we're making to bring customers a mobile, nationwide 5G network."

The announcement follows an April agreement for T-Mobile to merge with Sprint in order to better compete against giants Verizon and AT&T. Now, T-Mobile is saying it will definitively be the first to deliver nationwide 5G services.

Everyone wants 5G, but operators have been hesitant to foot the bill to take them across the finish line. In other words, they’ve been looking at the 5G pictures in bits and pieces rather than as a full-scale commercial upgrade.

So is this truly the end of the hype cycle and the beginning of real 5G action?

Based on the terms of the deal, many seem to think so. Nokia will be supply T-Mobile with 5G hardware, software and services that will make it possible to deliver broad coverage on 600 megahertz spectrum, as well as ultra-high-speed capacity on 28 megahertz airwaves in dense urban areas, according to both companies.

Related: Why Bitcoin Is Poised For A Breakout

In February, T-Mobile promised it would build out 5G in 30 cities this year. AT&T is planning seven cities, and harping on T-Mobile for ignoring ‘mid-sized’ venues.

Still, as TechCrunch points out, a wider rollout of 5G won’t happen until 2020 at the earlier, and many are still struggling with how to even define 5G as anything more specific than ‘what comes after 4G’.

“One of the things 5G has the opportunity to do is lift mobile networks and become a general-purpose technology like electricity. It’s a platform for the next decade and beyond. Yes, there’s a race to get it into handsets by the end of 2019, but there’s also a longer-term vision. That’s where we might put the cart in front of the horse if we hype this too much,” Qualcomm’s ‎Director of Technical Marketing, Matt Branda, told TechCrunch.

By Michael Scott for Safehaven.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment