Nokia Oyj won a $3.5 billion order from T-Mobile US Inc. to build fifth-generation mobile networks in the U.S., one of its largest contracts to date and a sign that network equipment vendors are starting to gain business from the new cellular technology.
Nokia will help build a nationwide 5G grid for the No. 3 wireless carrier, which has said its customers in New York, Los Angeles, Dallas and Las Vegas will be first to run the technology early next year.
The deal, which follows earlier announcements about the cooperation, is welcome news for the Finnish company. Chief Executive Officer Rajeev Suri has urged investors to look beyond weak results in the past couple of quarters, saying that the situation should brighten in the second half of the year as operators start spending on faster 5G gear.
This must be a lifeline for Nokia. They have been on life support for a while.