Nokia noticeably absent from AT&T’s five-year effort to deploy commercial-scale open radio access networks
AT&T is planning to spend roughly $14 billion over the next five years to shift 70% of its network traffic onto open and interoperable platforms, with the foundation provided by Ericsson.
The move echoes AT&T’s move during the mid-2010s to set a public goal to virtualize 65% of its network over a number of years. AT&T’s Igal Elbaz, network CTO, called the effort to scale Open RAN across the carrier’s nationwide network “transformational.”
“AT&T is taking the lead in open platform sourcing in our wireless network,” said Chris Sambar, EVP of 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.”
AT&T said that it expects to have fully integrated Open RAN sites up and running starting next year, working with both Ericsson and Fujitsu. It plans to start scaling in 2025 and by late 2026, it wants 70% of network traffic to be flowing over “open-capable” platforms.
“This move away from closed proprietary interfaces will enable rapid scaling and management of mixed supplier hardware at each cell site,” AT&T said in a joint statement with Ericsson, adding that as it scales, it will be working with “multiple suppliers such as Corning Incorporated, Dell Technologies, Ericsson, Fujitsu, and Intel.”
Noticeably absent from that list is Nokia, which was already dealt a blow in 2021 when Samsung beat out the NEM for Verizon’s 5G equipment business. During a media roundtable after the open networks announcement, Elbaz was asked about published reports that the deal means some Nokia equipment will be replaced within AT&T’s network. Elbaz in response emphasized both that AT&T intends to have a multi-vendor environment, and that Ericsson is the foundational partner.
He also pointed to the fact that major NEMs like Ericsson are now supporting Open RAN as evidence that the technology is increasingly mature.
In addition, AT&T noted that its expected $14 billion spend under the contract with Ericsson is “below what the company expects to spend for wireless capital expenditure over the next 5 years,” indicating that it expects to realize some savings through the move to a scaled, open network platform.
“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,” said Ericsson President and CEO Börje Ekholm. “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.”
Kristian Toivo, executive director of the Telecom Infra Project (TIP), responded to the news by saying that AT&T’s embrace of Open RAN “marks a pivotal milestone for the industry.”
Toivo continued: “The inclusion of incumbent suppliers underscores the critical role of their expertise and established relationships in driving the success of this open and disaggregated journey. This is a compelling proof point, affirming that Open RAN is unmistakably steering in the right direction, with major vendors converging into the ecosystem.”
The two partners also focused on the fact that there will be domestic sourcing for the radios involved in AT&T’s Open RAN build. Radios that include support for both C-Band and 3.45-3.55 GHz will come from Ericsson’s USA 5G Smart Factory in Lewisville, Texas—and Ericsson said it has recently become the first mobile infrastructure provider to achieve compliance with the bipartisan Infrastructure Act’s provisions around domestic sourcing known as the “Build America, Buy America” requirements.
“This is not a subscale trial,” Sambar told CNBC. “This is us and our partner going 100% all in on this, so we think this is really going to change the industry.”
