Ericsson may become the sole 5G supplier of MasOrange from the 2028-2029 period, according to a local press report
MasOrange, Spain’s largest mobile operator as a result of the merger between local carriers Orange Spain and Masmovil, has decided to significantly reduce the presence of equipment provided by Chinese vendors Huawei and ZTE, local newspaper Expansion reported.
The report noted that this decision will certainly benefit Swedish vendor Ericsson, which may become the sole 5G supplier of MasOrange from the 2028-2029 period.
The report also noted that the first phase of the process, which runs from 2024 to 2027, Huawei will see its share in the operator in terms of 5G equipment to go from the current 54% to around 39%. At the same time, Ericsson’s stake will increase from 42% to 61%.
The report also stated that ZTE, which currently has a 4% of the network, will be fully phased-out by the end of 2027.
The second phase of this process, which runs from 2028 to 2029, will potentially see the complete phase-out of Huawei’s gear in MasOrange’s 5G network, according to the report.
However, the report also highlighted that if Ericsson wants to secure the exclusive contract, it will have to meet the quality requirements set by MasOrange.
The report noted that this decision was chiefly driven by the MásMóvil executives, who were in favor of eliminating the future risk of having to change equipment if geopolitical conditions worsen, since both Huawei and ZTE are in the sights of the 5G Security Operations Center due to their relationship with the Chinese government. For Orange executives, the main concern is the risk of becoming dependent on a single western supplier, according to the report.
MasOrange recently noted that it plans to continue with the extension of its 5G network this year with the aim of reaching 100% of nearly 750 Spanish municipalities with more than 10,000 inhabitants.
According to the company’s plans, its 5G network will reach almost 3,700 municipalities by the end this year, which compares to the 2,700 municipalities currently covered by MasOrange’s 5G network. Currently, MasOrange covers 85% of the Spanish population with its 5G network.
By the end of 2024, the telco said it plans to reach more than 2,400 municipalities with less than 5,000 with its 5G network.
The telco highlighted it currently has nearly 9,800 sites which operate in the 700 MHz band. Of the total 700 MHz nodes that the company currently has, about 5,500 are distributed in nearly 2,500 towns with less than 50,000 inhabitants. Likewise, around 600 small towns and villages with less than 1,000 people also benefit from this mobile network, the telco said.
In April, MasOrange said it planned to invest 4 billion euros ($4.33 billion) in Spain within the next three years.
The new entity said that the investment will be chiefly oriented for the deployment of 5G and fiber optic networks as well as new services.
Earlier this year, Orange and Masmovil completed a joint venture combining their operations after the clearance provided by the European Union and the Spanish government.
