AT&T Taps Ericsson for $14 Billion Network Revamp, Ousting Nokia

  • Infrastructure deal aims to modernize network over five years
  • Deal is a blow to Nokia, which will delay profit targets
WATCH: AT&T’s choice of Ericsson to modernize its US wireless network sent shares of Nokia as much as 10% lower. Thomas Seal reports.Source: Bloomberg
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Ericsson AB won a $14 billion contract to modernize AT&T Inc.’s wireless network, agreeing to build an open network that can be supplied by a number of vendors and beating out its longtime rival Nokia Oyj.

The contract, which will let AT&T choose vendors that supply its antennas and infrastructure going forward instead of locking the US carrier into a single relationship, marks a “strategic industry shift,” Ericsson, based in Stockholm, said in a statement Monday. The funds will be paid out over five years and focus on upgrading AT&T’s infrastructure for 5G technology.