O2 UK has selected Ericsson to deploy its 5G radio access network (RAN) in additional areas across the UK, upgrading the existing 2G/3G/4G sites as part of a substantial network modernization program. Financial terms were not disclosed.
Following the launch of O2’s 5G commercial network in October last year, the extended partnership with Ericsson includes hardware, software and service upgrades in the West of the UK, bringing greater coverage, voice and data capacity. The contract covers new multiband and wide-band 5G radios as well as new 5G-optimized basebands to build sustainable sites in preparation for future increases in 5G coverage and capacity.
Brendan O’Reilly, CTO, O2, says: “We are pleased to be moving forward with Ericsson as one of our primary vendors for our 5G rollout. Telecommunications has never been more important in keeping the country connected, and we look forward to bringing the enhanced capabilities of 5G to our customers.”
Arun Bansal, President of Europe and Latin America, Ericsson, said: “5G will be crucial for the UK’s economic recovery and underpin its digital future. We are committed to ensuring that the UK achieves its gigabit connectivity targets so that enterprises and society at large benefit from high quality connectivity. We are delighted to be continuing our long-term partnership with O2 with this 5G network evolution.
Liberty's Virgin Media to merge with Telefónica's O2
The "fully-converged" JV is also expected to become a leading challenger in the B2B space as the combination will accelerate the adoption of converged fixed-mobile services to Virgin Media’s and O2’s existing business customers.
The JV will have an approximate annual turnover of £11 billion, and 46 million mobile, home, and business connections.
The companies cite significant operating benefits for the JV, with estimated run-rate cost, CAPEX and revenue synergies of £540 million on an annual basis by the fifth full year post closing, equivalent to a net present value of approximately £6.2 billion post tax and net of integration costs, as well as significant synergies from the accelerated usage of existing tax assets. The vast majority of the benefits relate to demonstrable cost and CAPEX synergies, with an annual run-rate of approximately £430 million out of which approximately 80% are expected to be achieved by the third full year after the closing.
CAPEX synergies:
- Use of existing infrastructure to provide services for each entity’s customers at lower cost compared to standalone / wholesale capabilities;
- Migration of Virgin Media mobile traffic to Telefonica UK’s network;
- Combination of regional and national network infrastructures and IT systems;
- Reduction in combined marketing expenditures;
- Potential to reduce general and administration costs; and
- Site rationalization
O2 activates 5G across London and Slough with Nokia
Nokia serves as the sole RAN provider to O2 across London.
Nokia said it is working with O2 to execute its intelligence-led rollout strategy, which prioritizes connecting transport hubs, key business areas, and entertainment and sports venues to ensure superior customer experience for local and international visitors.
Brendan O’Reilly, O2’s Chief Technology Officer, said: “As we roll out 5G, our intelligence-led strategy is driven by data and insight to identify where customers will benefit from 5G the most – Nokia is helping us to deliver that in one of the most high-density subscriber areas in the world. The transformational power of 5G yields huge potential for businesses and consumers alike, allowing them to get a head start on competitors.”
