VodafoneThree picks Ericsson and Nokia as key partners as part of £11bn plans

Mobile phone giant VodafoneThree has announced tie-ups with Ericsson and Nokia to supply network technology across the UK with contracts worth more than £2 billion.

Britain’s biggest mobile phone network – formed earlier this year from the merger of Vodafone’s UK business and rival Three UK – said Ericsson and Nokia were the key partners for the delivery of the network infrastructure build on eight-year contracts.

Four UK-based firms have also been brought on board – Beacon Communication Services, Circet Wireless, M Group and WHP Telecoms.

The project forms part of VodafoneThree’s pledge to invest £11 billion over the next 10 years, including on boosting 5G networks.

This helped the deal get over the line, having come under heavy scrutiny by the Competition and Markets Authority (CMA) amid concerns it could reduce options for mobile customers and lead to higher bills.

Up to 13,000 roles will be created across engineering, construction and maintenance of telecom towers, fibre optics, and base stations from the network build, with nearly three-quarters of jobs located outside London and the South East.

The deals unveiled on Monday come as part of that commitment, with a contract to deliver network technology to more than 17,000 sites.

Ericsson will modernise existing 4G and 5G infrastructure and deploy its network at more than 10,000 sites in the UK, helping VodafoneThree with its aim for a population-wide rollout of 5G connectivity by 2034.

Nokia will supply its network technology to around 7,000 sites across the UK.

Max Taylor, VodafoneThree chief executive, said: “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 UK’s best network.

“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 UK’s digital future.”

Borje Ekholm, president and chief executive of Ericsson, said: “Trusted high-performing programmable networks are critical to success for the UK’s digital economy.

“AI, automation and virtual/augmented reality won’t reach their potential without them.”

Vodafone and Three’s mega merger ensured its position as the UK’s biggest phone network with around 29 million customers.

The companies first announced the deal in June 2023, and it completed at the end of May this year.