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Both Ericsson and Nokia will supply network equipment for the deployment of T-Mobile’s planned 3G network in the U.S, the companies said this morning. Ericsson said it will “serve as the prime radio provider for WCDMA 3G services in certain markets, including New York City which is scheduled to be operational in 2007.” Nokia said it will deliver its “Flexi WCDMA Base Station optimized for T-Mobile’s newly acquired AWS spectrum bands.”
Back in October, Deutsche Telekom, T Mobile US’s German parent, said it would spend a total of $2.64 billion on a U.S. 3G network. The company planned to start deploying its network in the fourth quarter of this year, with most of the work planned to be completed in 2007 and 2008.
Today’s dueling press releases from Nokia and Ericsson are rather vague and don’t include any financial values of the contracts or if there are other equipment providers involved. But the equipment provider choices aren’t too surprising.
Ericsson has been winning over an increasing amount of carriers for HSPA deployments, and has signed up around 30 to date, including Hutchison Italy, UK, 3, according to a report from RBC Capital markets. The RBC report also says:
Ericsson may be gaining share from Alcatel/Lucent and Nokia/Siemens, both of whom are mired in major integration efforts. . . Nortel is losing share largely in part due to it abandoned UMTS plans . . . while pricing concerns persist, Ericsson may be better positioned to absorb competitive pricing actions due to its dominant market position.
Nokia says it has 64 customers to date for WCDMA 3G — almost half of the 134 commercially launched WCDMA 3G networks, including providing HSDPA networks for T-Mobile in Germany, the United Kingdom and the Netherlands.