VodafoneThree, the new joint venture formed from the merger of Vodafone UK and Three UK, has confirmed a multi-billion pound deal with two of the world’s leading telecoms equipment makers, Ericsson and Nokia. The contracts, worth more than £2bn and lasting for eight years, will see both companies deliver radio equipment, software, and core network systems to more than 17,000 mobile sites across the UK.
This forms a major part of VodafoneThree’s wider £11bn plan to modernise its mobile network over the next decade, expand 5G coverage, and prepare the groundwork for services that will rely on 5G Standalone technology.
Part of a bigger investment programme
The £2bn contracts are only one piece of a much larger upgrade. VodafoneThree has already outlined its intention to invest £11bn in UK mobile infrastructure over ten years. The operator aims to extend 5G Standalone coverage to nearly all of the UK population by the mid-2030s and expand fixed wireless access (home broadband delivered via mobile networks) to more than 80 percent of homes by 2030.
This commitment is part of the promises made during the merger process, with regulators expecting the combined company to deliver wider coverage and improved reliability compared with what either operator could have achieved separately.
The role of Ericsson and Nokia
Ericsson and Nokia will take on different parts of the project. Ericsson is expected to upgrade and expand equipment at more than 10,000 sites, supplying new Radio Access Network technology and core network systems that handle mobile data and voice services. Nokia will deliver advanced radio systems for about 7,000 sites and will also help modernise the voice core network, which underpins call quality and resilience.
The partnership is not entirely new. Both vendors were long-term suppliers to Vodafone and Three separately, but the contracts have now been reshaped to fit the combined strategy of the merged business.
UK-based partners join the build
Alongside Ericsson and Nokia, VodafoneThree has named several UK-based engineering and site-build firms to deliver the physical construction and maintenance work. These include Beacon Communication Services, Circet Wireless, M Group, and WHP Telecoms. Their involvement is expected to create significant employment across the country, particularly outside of London and the South East.
Economic and employment impact
VodafoneThree claims the wider investment programme could contribute up to £100bn to the UK economy between 2025 and 2035, mainly by improving productivity and enabling new digital services. The project is also forecast to generate up to 13,000 jobs in engineering, construction, and related services. While such projections are difficult to verify in full, it is clear that the scale of the rollout will require a large workforce and create opportunities for suppliers across the UK.
Technical significance of the upgrade
The network overhaul centres on 5G Standalone (5G SA), which is different from the 5G services most people currently use. Today’s 5G often still relies on 4G infrastructure in the background. 5G SA removes that dependency, allowing lower latency, faster speeds, and the ability to support a much higher number of connected devices.
This step is essential for future services such as advanced industrial automation, connected healthcare, and real-time applications in areas like virtual reality and autonomous transport. For consumers, the change will eventually translate into smoother mobile broadband, fewer coverage gaps, and greater reliability when lots of people are connected in one area.
Timelines for customers
The network refresh is not an overnight switch. Upgrades will take place gradually, starting with major cities and busy transport corridors before expanding to suburban and rural areas. VodafoneThree has said it intends to reach nearly 90 percent of the UK population with 5G Standalone within three years, with almost total coverage by 2034.
In the short term, customers should notice improved 4G speeds, stronger indoor coverage, and a reduction in so-called “not spots” where signals have traditionally been poor. Fixed wireless broadband delivered over 5G is also expected to become more widely available in areas with limited fibre rollout.
Oversight and regulation
The merger between Vodafone and Three was closely scrutinised by the Competition and Markets Authority and Ofcom. Approval was tied to commitments on investment, coverage, and fair pricing. Ofcom will continue to monitor progress, ensuring that VodafoneThree follows through on its promises and that consumers benefit from better services rather than facing higher prices or reduced choice.
Challenges to overcome
Rolling out a nationwide 5G Standalone network is complex. Building new sites or upgrading old ones often faces local planning restrictions, equipment supply delays, and challenges in rural areas. VodafoneThree will also need to manage customer expectations—coverage will not be uniform immediately, and the benefits of 5G SA may take years to be fully visible.
Another key issue is competition. The UK mobile market is shrinking from four major operators to three, raising concerns about long-term pricing and innovation. Regulators will be watching closely to ensure that consolidation leads to genuine improvements for users rather than reduced competition.
Global and European context
VodafoneThree’s announcement mirrors similar efforts across Europe, where operators are racing to build 5G SA networks. Germany, France, and Spain are all investing heavily in upgrades, often with the same vendors—Ericsson and Nokia—supplying equipment. Globally, hundreds of operators are beginning to phase out older 2G and 3G technologies to free spectrum for 4G and 5G, a move that aligns with VodafoneThree’s long-term strategy.
What this means for everyday users
For consumers, the most immediate changes will be more reliable calls, stronger 4G coverage, and better mobile broadband speeds as sites are upgraded. Over time, the shift to 5G Standalone will open the door to new services—such as seamless HD streaming, cloud gaming, and more widespread use of mobile home broadband as a genuine alternative to fixed-line services.
Businesses can expect improvements in machine-to-machine communication, IoT performance, and the kind of low-latency connectivity needed for smart factories or real-time logistics.
Conclusion
VodafoneThree’s £2bn contracts with Ericsson and Nokia represent one of the UK’s largest private telecoms infrastructure projects in recent history. It is not only about faster mobile internet but also about reshaping the country’s digital backbone for decades ahead. Success will depend on how quickly and effectively the company can roll out upgrades, how well it works with regulators and suppliers, and whether the promised benefits reach homes and businesses across the UK.