REG - Telefon AB Ericsson - New Collaboration with AT&T

Telefonaktiebolaget LM EricssonAnnouncement

05/12/2023 09:30

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RNS Number : 7010V  Telefonaktiebolaget Lm Ericsson  05 December 2023

AT&T to Accelerate Open and Interoperable Radio Access Networks (RAN) in
the United States through new collaboration with Ericsson

AT&T today announced plans to lead the United States in commercial scale
open radio access network (Open RAN) deployment. This industry-leading move,
in collaboration with Ericsson, will further the telecommunications industry
efforts and 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.

AT&T's and Ericsson's multiyear joint commitment to Open RAN deployment
comes at a pivotal moment in the 5G innovation cycle. This move to an open,
agile, programmable wireless network positions AT&T to quickly capitalize
on the next generation of wireless technology and spectrum when it becomes
available. These innovative technologies will enable lower-power, sustainable
networks with higher performance to deliver enhanced user experiences.
Ericsson's open architecture will provide a foundation and springboard for
developers driving innovation through open and programmable networks and
bringing new suppliers into the industry. This will foster modernization and
competition in the U.S. wireless equipment market.

The company expects that increased competition in the U.S. RAN market will
yield more innovation and greater efficiencies. Committing to Open RAN with
its suppliers deploying open hardware, migrating to cloud RAN, and introducing
3rd party radios leads to more flexibility in choosing equipment, lower
network costs and improved operational efficiencies.  This cutting-edge open
management approach to building the network will enable the company to
continue to invest in its fast-growing broadband network.

"AT&T is taking the lead in open platform sourcing in our wireless
network," said Chris Sambar, Executive Vice President, AT&T 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 of Ericsson, says: "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."

Ericsson will leverage its USA 5G Smart Factory in Lewisville, Texas in the
manufacture of 5G equipment for this contract. Opened in 2020, the factory is
highly automated and efficient, and is fully powered by renewable electricity.
The Smart Factory recently completed an expansion, bringing its production
floor to more than 107,000 square feet. The state-of-the-art 5G smart factory
produces next generation 5G and Advanced Antenna System radios for Ericsson's
U.S. customers. Ericsson also recently became the first mobile infrastructure
provider to achieve compliance with the infrastructure law's Build America,
Buy America provisions. The factory's products are labeled Made in USA as
Ericsson's facility complies with the Build America, Buy America
infrastructure laws Act.

AT&T is one of the largest infrastructure investors in the United States
across both wireless and broadband fiber.  The commitment to Open RAN is a
key part of AT&T's strategy to provide the seamless connectivity America
needs.  With owner's economics in both wireless and fiber, AT&T aims to
become the largest, fastest growing converged fiber company with a modern,
competitive wireless network.  '

AT&T will use this new collaboration with Ericsson to enhance its wireless
network in North America and expand the most reliable 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. Given the
interdependence between fiber and wireless, and the increasing desire for
customers to have one connectivity provider across fixed broadband and
wireless, the company sees economically attractive opportunities to expand its
fiber footprint in the coming years as well.

This is a joint press release with AT&T

 

FOR FURTHER INFORMATION, PLEASE CONTACT

Contact person

Peter Nyquist, Head of Investor Relations

Phone: +46 705 75 29 06

E-mail: peter.nyquist@ericsson.com (mailto:peter.nyquist@ericsson.com)

Additional contacts

Stella Medlicott, Senior Vice President, Marketing and Corporate Relations

Phone: +46 730 95 65 39

E-mail: media.relations@ericsson.com (mailto:media.relations@ericsson.com)

Investors

Lena Häggblom, Director, Investor Relations

Phone: +46 72 593 27 78

E-mail:  lena.haggblom@ericsson.com (mailto:lena.haggblom@ericsson.com)

Alan Ganson, Director, Investor Relations

Phone: +46 70 267 27 30

E-mail: alan.ganson@ericsson.com (mailto:alan.ganson@ericsson.com)

Media

Ralf Bagner, Head of Media Relations

Phone: +46 76 128 47 89

E-mail: ralf.bagner@ericsson.com (mailto:ralf.bagner@ericsson.com)

Media relations

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

 

Forward-looking statements

This release includes forward-looking statements, including performance and
results of operations, business plans, objectives, market conditions, and
assumptions upon which those statements are based including, in particular the
following risks and uncertainties:

- Our goals, strategies, planning assumptions and operational or financial
performance expectations

- Industry trends, future characteristics and development of the markets in
which we operate

- The expected demand for our existing and new products and services as well
as plans to launch new products and services including research and
development expenditures

- The ability to deliver on future plans and to realize potential for future
growth

- Technology and industry trends including the regulatory and standardization
environment in which we operate, competition and our customer structure.

The words "believe," "expect," "foresee," "anticipate," "assume," "intend,"
"likely," "projects," "may," "could," "plan," "estimate," "forecast," "will,"
"should," "would," "predict," "aim," "ambition," "seek," "potential,"
"target," "might," "continue," or, in each case, their negative or variations,
and similar words or expressions are used to identify forward-looking
statements. Any statement that refers to expectations, projections or other
characterizations of future events or circumstances, including any underlying
assumptions, are forward-looking statements.

We caution investors that these statements are subject to risks and
uncertainties many of which are difficult to predict and generally beyond our
control that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking information and
statements.

Important factors that could affect whether and to what extent any of our
forward-looking statements materialize include, but are not limited to, the
factors described in the section "Risk Factors" in the latest interim reports,
and in "Risk Factors" in the Annual Report 2022.

These forward-looking statements also represent our estimates and assumptions
only as of the date that they were made. We expressly disclaim a duty to
provide updates to these forward-looking statements, and the estimates and
assumptions associated with them, after the date of this release, to reflect
events or changes in circumstances or changes in expectations or the
occurrence of anticipated events, whether as a result of new information,
future events or otherwise, except as required by applicable law or stock
exchange regulations.

This is information that Telefonaktiebolaget LM Ericsson is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person set out
above, at 23:00 CET on December 4, 2023.

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