Nokia Corp. (NYSE: NOK) shares made a handy gain on Monday after the company announced that it would be joining forces with T-Mobile US Inc. (NASDAQ: TMUS) to deploy a nationwide 5G network. T-Mobile will be paying $3.5 billion to get a jump-start on the next generation of wireless networks in the United States.
In terms of the breakdown, Nokia will provide T-Mobile with its complete end-to-end 5G technology, software and services portfolio, assisting in its efforts to bring its 5G network to market for customers in the critical first years of the 5G cycle.
As part of the agreement, Nokia will help build T-Mobile’s nationwide 5G network with 600 MHz and 28 GHz millimeter wave 5G capabilities compliant with 3GPP 5G New Radio (NR) standards.
Using 5G, Nokia and T-Mobile will develop, test and launch the next generation of connectivity services that will cover a wide range of industries, including enterprise, smart cities, utilities, transportation, health, manufacturing, retail, agriculture and government agencies.
Neville Ray, chief technology officer at T-Mobile, commented:
We are all in on 5G. Every dollar we spend is a 5G dollar, and our agreement with Nokia underscores the kind of investment we’re making to bring customers a mobile, nationwide 5G network. And together with Sprint, we’ll be able to do So. Much. More.
Shares of Nokia were last seen trading up about 2% at $5.53, with a consensus analyst price target of $6.58 and a 52-week range of $4.51 to $6.59.
T-Mobile shares were up less than 1% at $59.94 in a 52-week range of $54.60 to $66.52. The consensus price target is $76.74.