Ericsson and Vodafone have announced a five-year strategic partnership to modernise Vodafone’s network footprint using Ericsson’s programmable network solutions across several markets. Ericsson will be Vodafone’s sole RAN vendor in Ireland, Netherlands, and Portugal, as well as a major vendor in Germany, Romania and Egypt.

The modernisation of Vodafone’s RAN infrastructure and management will lay the foundation for widespread deployment of 5G Standalone, enabling Vodafone to offer differentiated connectivity solutions with guaranteed, performance-based characteristics for their consumer and enterprise customers.

Under the partnership, Vodafone will deploy Ericsson’s Open RAN-compatible Massive MIMO radios and RAN Compute solutions, as well as 5G Advanced RAN software capabilities extensively across their networks in these markets.

The pan-European deal introduces Ericsson Intelligent Automation Platform and a number of AI-powered rApps which will be deployed market-by-market to deliver automated RAN optimisation, energy efficiency, and management of the multi-vendor network.

Germany will be the first market to deploy the platform and rApps for Ericsson and multi-vendor RAN management, with work beginning in Q4 2025. The comprehensive AI and network evolution partnership will elevate Vodafone’s infrastructure to world-class standards, taking the first steps towards autonomous networks and ensuring their networks are at the forefront of technological advancement and capable of meeting future demands.

Alberto Ripepi, Chief Network Officer at Vodafone Group, commented: “This strategic partnership with Ericsson marks a significant step in our network evolution journey. By modernising our network with latest generation equipment and embracing high-performing new 5G Advanced capabilities, we’re transforming our infrastructure for best customer experience and high network efficiency, utilising automation and AI agents to seamlessly meet network demands in real time. We’re also laying the groundwork to capitalise on the emerging market for network APIs through our joint venture, Aduna. This powerful combination will allow us to expose our network capabilities to developers, spurring a wave of innovation in applications and services, and positioning Vodafone at the forefront of network technology and innovation.”

Patrick Johansson, Ericsson Senior Vice President and Head of Market Area Europe, Middle East and Africa, added: “We are proud to expand our long-standing relationship with Vodafone through this transformative agreement. This partnership aligns with our vision for high-performing programmable networks, laying a robust foundation for Vodafone to deliver differentiated connectivity experiences. By enabling innovative, performance-based solutions across consumer and enterprise segments, we’re opening new opportunities for service monetisation and driving the next wave of telecommunications innovation.”

Meanwhile, Ericsson has reported Q3 organic sales declined by 2 per cent, with growth in three out of four market areas. Reported sales were SEK 56.2 billion (€5.1bn), with an FX impact of SEK -4.2 billion. Adjusted gross income decreased to SEK 27 billion as currency headwinds offset strong operational execution. Reported gross income was SEK 26.8 billion.

Börje Ekholm, President and CEO, said: “In Q3, we established margins at a new long-term level following strong operational execution over the past few years. Cloud Software and Services sales grew 9 per cent, driven by strong growth in core networks. Our solid progress on technology initiatives continues. Gartner and Omdia reconfirmed our 5G solutions are industry leading. Our Open RAN-ready portfolio includes an AI native, future proof software architecture which is hardware agnostic. The portfolio integrates with third-party radios and supports Ericsson silicon and third-party CPU/GPUs.”

“Looking ahead, we expect Enterprise organic sales to stabilise in Q4 and the RAN market to remain broadly stable. Solid recurring cash flow and the iconectiv sale contributed to a strong Q3 cash position, offering scope for increased shareholder distributions. The Board’s recommendation on the scale and mechanism for the distribution will be included in the Q4 report for decision at the AGM,” added Ekholm.

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Tags: ericsson, Vodafone