Ericsson, along with Alcatel-Lucent will help Verizon put the infrastructure in place to allow the US wireless service provider launch the country’s first commercial 4G Long Term Evolution (LTE) network starting in 2010.
“Verizon Wireless’ LTE network deployment will be driven by our vision of providing ubiquitous global wireless broadband connectivity and mobility,” Verizon CEO Dick Lynch said in a statement.
He said the new, more powerful network would help “meet consumer demand for mobilizing the many applications they frequently use when tethered to high bandwidth wired networks.”
While exact terms of the contract were not disclosed, telecoms analyst Helena Nordman-Knutson from the Öhman investment bank estimated that the order to bring Ericsson more than 20 billion kronor ($2.3 billion) over two years.
“That’s just talking about the radio equipment; Verizon needs a new network with all that entails,” she told the Dagens Industri (DI) newspaper.
Ericsson CEO Carl-Henric Svanberg emphasized the importance of the order for his company.
“When one of the world’s largest and most well-managed operators decides to roll out LTE across the entire United States it’s obviously very important,” he told DI.