A collaboration between AT&T and Ericsson aims to accelerate open and interoperable radio access networks (RANs) in the USA.

AT&T plans to lead the USA in commercial-scale Open RAN deployment. This collaboration with Ericsson should further the telecommunications industry efforts and build a more robust ecosystem of network infrastructure providers and suppliers.

AT&T’s spend could approach roughly $14bn over the five-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 should 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, 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 capitalise quickly on future wireless technology and spectrum when they become available. These innovative technologies should 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 suppliers into the industry. This should foster modernisation and competition in the US wireless equipment market.

The company expects that increased competition in the US 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 third-party radios lead to more flexibility in choosing equipment, lower network costs and improved operational efficiencies. This open management approach to building the network should let the company continue investing in its growing broadband network.

“AT&T is taking the lead in open platform sourcing in our wireless network,” said Chris Sambar, executive vice president at AT&T. “With this collaboration, we will open up radio access networks, drive innovation, spur competition and connect more Americans with 5G and fibre. We are pleased that Ericsson shares our support for Open RAN and the possibilities this creates for American digital infrastructure.”

Börje Ekholm, CEO of Ericsson, added: “High-performance and differentiated networks will be the foundation for the next step in digitalisation. 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 monetise the network. We are truly proud to be partnering with AT&T in the industrialisation of Open RAN and help accelerate digital transformation in the USA.”

Ericsson will use its 5G smart factory in Lewisville, Texas, in the manufacture of 5G equipment for this contract. Opened in 2020, the factory is automated and efficient, and is powered by renewable electricity. The factory recently completed an expansion, bringing its production floor to more than 9900 square metres. The factory produces 5G and antenna system radios for Ericsson’s US 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 labelled 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 USA across wireless and broadband fibre. The commitment to Open RAN is a key part of AT&T’s strategy to provide seamless connectivity. With owner’s economics in wireless and fibre, AT&T aims to become the largest, fastest growing converged fibre company with a modern, competitive wireless network.

AT&T (www.att.com) will use this collaboration with Ericsson to enhance its wireless network in North America and expand the 5G network. The expected spend under the Ericsson (www.ericsson.com) contract is below what the company expects to spend for wireless capital expenditure over the next five years. Given the interdependence between fibre and wireless, and the increasing desire for users to have one connectivity provider across fixed broadband and wireless, the company sees economically attractive opportunities to expand its fibre footprint in the coming years.