Swedish vendor will bag “several hundred million” euros over the five-year period of its extended contract: VMO2 has committed to investing £700m in its network this year
Ericsson and Nokia have both been awarded multi-year contracts to upgrade Virgin Media O2’s (VMO2’s) primary RAN as part of its its Mobile Transformation Plan. Earlier this month, the operator reiterated its commitment to investing £700 million in its mobile network this year – the Plan’s aim is to deliver faster, more reliable mobile connectivity across the UK.
The network update will be split approximately 55/45 between Ericsson and Nokia, according to Nokia’s press agency. Ericsson says this is ‘false information’. We have requested further information from Ericsson about the actual split but it is not available beyond saying Ericsson is the primary contractor.
A major element of the network update will be maximising the additional 5G mid-band spectrum it acquired in 2025 to boost its 5G Standalone (SA) connectivity. VMO2 plans to leverage the capabilities of its 5G SA network to support differentiated services through network slicing for application, enterprise and industry use cases. The operator also plans to move more of its customer base onto its 5G SA network, which currently is available to 87% of the UK’s population.
Ericsson stated it will earn “several hundred million” euros over the five years of the extended contract, deploying a range of Ericsson Radio System products. They include its multi-band Massive MIMO radios – such as the AIR 3229 and the triple-band Radio 4486 – at new and existing locations. Ericsson states AI and machine learning-based software will be deployed to optimise the network’s performance and efficiency in real time.
In due course, Ericsson says it contract is structured to enable VMO2 to evolve to Cloud RAN and scale 5G-Advanced.
VMO2 and Nokia have a relationship spanning more than two decades. The Finnish vendor did not hint at what its contract was worth. Under the new deal, Nokia will supply its GigaSite architecture, Dual‑Band Massive MIMO and AI‑enabled baseband platforms to deliver improved spectral efficiency, coverage, capacity and throughput while laying the foundation for 5G‑Advanced capabilities.
Jeanie York, Chief Technology Officer at Virgin Media O2 (pictured), described both Ericsson and Nokia as “a long-standing partner in our network evolution”. She added, “Our Mobile Transformation Plan is all about delivering a step-change in network performance for our customers, ensuring they have fast, reliable connectivity wherever they are.”
Building on last year’s phase
Last year’s scope of the Mobile Transformation Plan involved Ericsson improving performance and capacity improvements through additional spectrum, network densification and small‑cell deployments and upgrades at network hot spots like stadia and transport hubs. It also extended coverage along railways, major roads and previously underserved rural and coastal areas.
