Ericsson secures lead vendor role as VodafoneThree accelerates post-merger network modernization
In sum – what to know:
Ericsson + Nokia – Ericsson will supply RAN and core tech to more than 10,000 VodafoneThree sites, with Nokia covering 7,000, in a £2B U.K. 5G equipment agreement.
Merger milestone – The contract follows Vodafone and Three’s £16.5B merger this summer, marking a major structural shift in the U.K. mobile market.
Ambitious rollout – VodafoneThree has pledged £11B over 10 years to deliver 99.95% 5G SA coverage by 2034, eliminating 16,500 sq/km of “not spots” by year-end.
Ericsson has secured a 12.5 billion Swedish crown (about $1.3 billion) contract to supply 5G communications equipment to VodafoneThree, the U.K.’s newest mobile giant formed by the merger of Vodafone UK and Three UK. The deal makes Ericsson the primary vendor in a wider £2 billion equipment agreement that also includes Nokia.
Under the contract, Ericsson will deliver radio access network (RAN) and core network technology to more than 10,000 sites, while Nokia will support the build with equipment across about 7,000 sites. Ericsson’s systems include energy-efficient, AI-powered hardware and advanced smart antennas aimed at boosting performance in major cities, including London, Edinburgh, Cardiff, and Belfast.
The announcement follows the completion of Vodafone and Three’s £16.5 billion merger this summer, which created a new market leader with 29 million mobile customers. The merger, years in the making, has been described as one of the most important structural shifts in the history of U.K. telecoms.
VodafoneThree has outlined an ambitious network expansion plan, pledging to invest £11 billion over the next decade to modernize infrastructure and deliver one of Europe’s most advanced 5G Standalone (5G SA) networks. The company has promised “a fully funded, regulated, and guaranteed network build plan” to reach 99.95% population coverage with 5G SA by 2034. By the end of this year, it also aims to remove 16,500 square kilometers of “not spots” — areas with no mobile coverage — equivalent to ten times the size of London.
“We said we would deliver at pace and, just a few months in, we are delighted to announce our strategic partners, Ericsson and Nokia, that will work with us to deliver our ambition of building the U.K.’s best network,” said VodafoneThree CEO Max Taylor. “They bring the scale and expertise needed to accelerate the delivery of a resilient, secure, world-class and future-ready network, and together, we are laying the foundations for the U.K.’s digital future.”
The deal represents a significant win for Ericsson in Europe’s competitive equipment market, while cementing VodafoneThree’s position as the central player in the U.K.’s 5G rollout.
