A fresh round of 5G contracts has shifted the balance between major network vendors, with Ericsson emerging as the primary supplier for Virgin Media O2, edging ahead of Nokia.
The new 5-year deal, valued at several hundred million euros, will see Ericsson power the majority of VMO2’s radio access network (RAN). This marks a clear gain in market share for Ericsson, while Nokia’s share of the network footprint is expected to reduce, though it will continue as an important partner.
The development follows VMO2’s broader £1.4 billion ($1.9 billion) investment plan announced in early 2025 to upgrade its mobile infrastructure. The operator had issued a request for proposal (RFP) to RAN vendors as part of this initiative.
VMO2’s network is closely tied to Cornerstone Telecommunications Infrastructure Ltd, a joint venture with VodafoneThree that manages around 18,000 sites across the UK. While VodafoneThree oversees western regions, VMO2 manages sites in the east, along with approximately 2,000 standalone sites in major cities.
Under the new agreement, Ericsson will deliver multiband, high-performance radios supporting frequencies from 700MHz to 3.5GHz. These include compatibility with additional spectrum acquired by VMO2 from VodafoneThree for £343 million last year, covering bands between 1400MHz and 3.4GHz.
Both Ericsson and Nokia will contribute equipment to around 1,000 high-capacity “giga sites” in urban areas. These sites will use advanced massive MIMO technology to improve network performance and capacity.
The investment is expected to accelerate VMO2’s rollout of standalone 5G, which operates independently of legacy 4G infrastructure. According to Ofcom, VMO2 previously achieved 76% outdoor 5G population coverage, later claiming to reach 87% with standalone 5G.
Despite industry efforts to introduce open RAN systems, traditional vendors like Ericsson and Nokia continue to dominate large-scale telecom networks. Smaller vendors have struggled to gain traction, reinforcing a duopoly in markets like the UK.
Ericsson’s growing presence highlights the UK’s importance as a key market, contributing around 4% of its global revenues, behind the US and India. Meanwhile, Nokia remains competitive, having secured significant contracts with VodafoneThree, including supplying equipment to around 7,000 sites.
The latest deal underscores intensifying competition in the 5G space, while also reflecting operators’ preference for established vendors as they expand next-generation network infrastructure.
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