Photo by Adomas Aleno on Unsplash
AT&T Collaborates With Ericsson To Introduce ORAN Technology to the US
December 5, 2023
AT&T recently made a major move in the telecommunication industry that helps reshape the landscape. The company has partnered with Ericsson to establish a telecom network based on the cutting-edge ORAN (open radio access network) technology. This innovative system is set to encompass around 70% of AT&T wireless traffic across the United States by the end of 2026. This marks a significant leap in the evolution of this new technology on U.S. soil.
ORAN technology occupies a unique space in the telecom world. It brings a drastic reduction in costs for telecom operators by utilizing cloud-based software and equipment from a variety of providers. This is a shift from the traditional dependence on proprietary equipment supplied by companies like Nokia, Ericsson, and Huawei, which aren’t interoperable.
The adoption of ORAN technology has been a mixed bag. While telecom providers such as Telefonica and Vodafone have experimented with the technology, it hasn’t seen widespread use by current operators. However, new networks like Dish and Japan’s Rakuten are now utilizing Open RAN.
“All of the new equipment that we are going to be putting out will be Open RAN capable. You’ve got to give them something that they really want and in return, we are going to get something that not only AT&T wants but the entire industry wants. This is not a subscale trial. This is us and our partner going 100% all in on this, so we think this is really going to change the industry.”
Chris Sambar, executive vice president of AT&T Network, via Reuters
AT&T has dedicated extensive resources to the evaluation of Open RAN, conducting a six-month analysis with a large team. They’ve reviewed numerous vendors and considered several proposals. Chris Sambar, AT&T Network’s executive vice president, confirmed that all the new equipment they’re deploying will be Open RAN compatible.
The contract with Ericsson could see AT&T’s expenditure nearing $14 billion over a five-year period. This successful bid will cement Ericsson’s position as AT&T’s largest supplier, gradually replacing Nokia’s share in AT&T’s operations. This shift has led to speculation about Nokia’s future contracts, causing its shares to drop 8% on the New York Stock Exchange. In 2020, Nokia experienced a stumble when Samsung secured a $6.64 billion contract to offer 5G equipment to Verizon within the U.S.
Open RAN’s progress has been hampered by significant vendors’ reluctance to make their proprietary interfaces available to other companies, fearing business loss. However, that’s changing now, with Ericsson deciding to open its interfaces, making this a beneficial move for the whole industry. AT&T will maintain contracts with other Open RAN vendors outside of this deal to ensure a smooth transition.
Expect to see fully integrated Open RAN sites in operation with coordination from Ericsson and Fujitsu commencing in 2024. By 2025, AT&T’s network will include equipment from many suppliers.
Recent News
Media Giants Depend on Sports As Content Shortages Rise
As Hollywood emerges from last year’s strikes, major media companies are turning to live sports to attract audiences and advertisers. This trend was evident during this year’s Upfront presentations, where media giants showcased their upcoming content and advertising opportunities.
New Trader Joe’s Opens in SF After 10 Years
San Francisco’s Hayes Valley neighborhood welcomed a highly anticipated new addition on May 17, 2024, with the grand opening of a Trader Joe’s at 555 Fulton St., on the corner of Laguna Street. This event marks the end of a decade-long wait for residents who have been eagerly looking forward to a new grocery store in their area.
China’s Property Market Boost: Stocks Surge, Copper Hits Highs
The Chinese government unveiled a comprehensive support package that has sent ripples through financial markets. This initiative includes a slew of measures aimed at stimulating housing demand and addressing the excess inventory burdening developers. The immediate impact was a significant rally in Chinese stocks and a surge in commodity prices, notably copper, which hit record highs.
Mercedes-Benz Workers in Alabama Reject Union
In a pivotal moment for autoworkers in the southern United States, employees at a Mercedes-Benz plant in Alabama have voted against joining the United Auto Workers (UAW) union. The outcome, with 56% of workers voting against unionization and 44% in favor, comes as a significant setback for the UAW’s efforts to expand its influence in the region.