BT and Ericsson ink first commercial 5G private network agreement of its kind in UK

The multi-year deal will enable BT to sell next generation mobile network technology products to a variety of businesses

Telecommunications and technology giants BT and Ericsson have signed a multi-year contract to provide commercial 5G private networks for the UK market.

The deal is the first of its kind in the country and will enable BT to sell next generation mobile network technology products to organisations in sectors such as manufacturing, defence, education, retail, healthcare, transport and logistics.

It comes after BT announced it was investing almost £100m over the next three years in its ‘Division X' unit to accelerate the development of customer solutions.

Marc Overton, BT's managing director for Division X, said: "This UK-first we have signed with Ericsson is a huge milestone and will play a major role in enabling businesses' transformation, ushering in a new era of hyper-connected spaces.

"We have combined our skill and expertise at building converged fixed and mobile networks with Ericsson's leading, sustainable and secure 5G network equipment, to offer a pioneering new proposition that will be attractive to many industries. 5G private networks will also support smart factory processes and the advancement of Industry 4.0 which can realise significant cost savings and efficiencies for manufacturers."

Private networks are wireless solutions that provide secure indoor and outdoor 5G cellular coverage.

New applications and IoT capabilities can be enabled through a private 5G network to improve productivity, optimise operations and drive cost savings.

According to a forecast from MarketResearch.com, 5G private networks are predicted to grow at an average rate of 40 per cent a year between 2021 and 2028, by which time the market will be worth $14bn (£10.7bn).

"Both BT and Ericsson believe there is significant demand from UK businesses looking to take advantage of the benefits the new technology can provide," BT said in a statement.

Katherine Ainley, CEO of Ericsson UK and Ireland, said: "This ground-breaking agreement with BT means we are together taking a leading role in ensuring 5G has a transformative impact for the UK.

"The high quality, fast and secure connectivity provided by Ericsson Private 5G can help organisations make all-important efficiency gains that can create safer, more productive, and sustainable business operations and help the country build global leaders in the industries and technologies of the future."