Ericsson, Nokia Secure $2.7 Billion Deal with Vodafone Three in the UK

Vodafone Three has signed a £2 billion ($2.7 billion) agreement with Swedish telecom equipment maker Ericsson (ERICb.ST) and has also struck a separate deal with Finland’s Nokia (NOKIA.HE) to supply 5G equipment over the next decade, the companies announced on Monday.

Ericsson, the lead vendor, said in a statement that its contract is valued at 12.5 billion Swedish crowns ($1.3 billion).

Nokia, in a separate release, did not disclose financial terms but noted that the deal marks its return as a supplier for Vodafone and Three in the UK. Nokia will provide its radio access network (RAN) and core network equipment across nearly 7,000 sites nationwide.

The announcement follows Vodafone (VOD.L) and CK Hutchison’s (0001.HK) completion of their UK merger in June, creating Vodafone Three. The new company has pledged to invest £11 billion ($14.8 billion) over the next 10 years to build one of Europe’s most advanced 5G networks.

Vodafone Three said Ericsson will introduce new 5G radio products across its network, including AI-powered and energy-optimized hardware and smart antennas, aimed at delivering significantly faster data speeds to customers in London, Edinburgh, Cardiff, and Belfast.

The contracts mark an important boost for both Nordic rivals as they contend with a broader market slowdown and the impact of tariffs on their U.S. business.

($1 = 9.3869 Swedish crowns)
($1 = 0.7431 pounds)