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Nokia Gets 5-Year Deal From AT&T for 5G Equipment

AT&T will use Nokia’s C-Band portfolio to boost and expand the telecom-services company's 5G reach in the U.S.

Nokia  (NOK) - Get Nokia Corporation Sponsored American Depositary Shares Report reached a five-year deal with AT&T  (T) - Get AT&T Inc. Report that will help expand the telecom giant's 5G network coverage in the U.S.

Terms weren't disclosed.

Under the agreement, Nokia will provide its latest fifth-generation equipment to power 5G on AT&T’s C-Band network.

Nokia’s own C-Band portfolio “includes support for both 5G stand-alone networks and non-standalone networks, cloud-based implementations and [open radio access network] products,” Nokia said.

This will enable AT&T to “boost network capacity and support both indoor and outdoor 5G coverage.” It also will enable the Dallas company to rapidly roll out 5G and introduce services, said Nokia, the Finnish telecom-equipment company.

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AT&T will begin rolling out the first phase of available C-Band spectrum in late 2021. This is a part of the $78 billion in bids U.S. wireless companies won in a C-Band spectrum auction last month, Reuters said.

The U.S. government provided 280 MHz of spectrum and 100 MHz of that will be available for the development of 5G by late 2021.

Igal Elbaz, AT&T's senior vice president of wireless and access technology, said the company and Nokia had collaborated for more than 20 years. Nokia has been involved in implementing each generation of wireless technology, he said.

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At last check AT&T shares were trading 0.3% higher at $30.24. Nokia American depositary receipts were trading 5.6% lower at $4.04.

Nokia yesterday said it would eliminate as many as 10,000 jobs within two years to cut costs and invest more in research, Reuters reported. The Finnish telecom group is stepping up its challenge to Sweden’s Ericsson and China’s Huawei, the news service reported.