AT&T removing Nokia radios from its network and swapping them with Ericsson radios

AT&T has begun tearing Nokia's radios out of its network and replacing them with radios from Ericsson. AT&T's "rip-and-replace" plan asks for the elimination of Nokia hardware from about one-third of its entire national wireless network. Analysts estimated the job could cover hundreds of thousands of Nokia radios. AT&T's wireless network stretches across an estimated 73,000 US cell towers, and each of those towers could hold a half dozen radios, or more.

The Dallas-based telecom giant said it plans to start the swap next year and aims to have 70% of its wireless network traffic passing through open platforms by late 2026. AT&T said the shift will fast-track its network overhaul and allow it to deepen its use of hardware and software from niche suppliers like Corning, Dell Technologies, Fujitsu and Intel in future years. Ericsson, which until recently had played down the cost and performance benefits of open standards, has now agreed to open up its proprietary software interfaces to companies that make competing products.

Nokia’s American depositary receipts fell 5% in extended trading after shedding more than 9% during Monday’s session. ADRs in Ericsson rose 4% after hours, adding on to its 5% gain during regular trading.

Ericsson said it would fulfill the new contract with equipment made in a Lewisville, Texas, factory it opened in 2020. The Swedish company said it complies with Buy America provisions in the federal government’s $1 trillion infrastructure law.

The market for wireless radio transmitters that link billions of cellphones to the internet is dominated by Scandinavian suppliers Ericsson and Nokia and China’s Huawei Technologies. South Korea’s Samsung Electronics also sells some network equipment.

Several mobile network operators have tried gear from smaller suppliers only to face trouble blending technologies from multiple vendors. Wireless companies such as Rakuten Mobile and Dish Network have added open standards to new networks built from scratch, but they have yet to gain significant market share.

U.S. government officials have long urged companies around the world to test open-network standards as a way to boost competition in the wireless network supply chain. The past two administrations have advocated stronger competition as a counterbalance to business with Huawei, which officials have called a national-security threat. Huawei has denied the allegations.