VodafoneThree’s Core Network Deal Could Be a Game Changer for Ericsson (OM:ERIC B)

• On September 22, 2025, VodafoneThree announced it selected Ericsson to power the majority of its next-generation UK mobile network, including the entire core network, through a SEK12.5 billion (almost £1 billion) eight-year partnership, covering extensive deployment of Ericsson's 5G Standalone solutions in major UK cities.
• This exclusive deal positions Ericsson as the sole nationwide core network vendor for one of Europe's largest network consolidation undertakings, highlighting the company's expanding influence in key telecom infrastructure upgrades.
• We'll explore how securing sole core network vendor status in the UK could shape Ericsson's investment narrative and growth outlook.

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Telefonaktiebolaget LM Ericsson Investment Narrative Recap

Investors in Ericsson are often drawn by the company’s global role in 5G and advanced telecom infrastructure, banking on rising demand for next-generation network equipment and monetization through enterprise connectivity. The recent SEK12.5 billion VodafoneThree deal reaffirms Ericsson’s technology leadership and strengthens its growth catalysts in core markets, though in the short term, the primary risk remains exposure to geopolitical shifts and intensified competition rather than immediate financial impact from this single contract.

Alongside this major win, Ericsson’s private 5G deployment at Hitachi Rail in Maryland stands out, showcasing the firm’s ability to capture industrial digital transformation opportunities. Such industry partnerships support Ericsson’s long-term catalyst, the global shift towards AI-powered, high-performance networks, even as the company faces margin pressures and evolving market risks.

By contrast, investors should be aware that ongoing uncertainty from trade restrictions and heightened geopolitical friction continues to ...

Read the full narrative on Telefonaktiebolaget LM Ericsson (it's free!)

Telefonaktiebolaget LM Ericsson's narrative projects SEK242.3 billion in revenue and SEK18.2 billion in earnings by 2028. This is based on a -0.5% annual revenue decline and a SEK0.9 billion earnings increase from the current SEK17.3 billion.

Uncover how Telefonaktiebolaget LM Ericsson's forecasts yield a SEK77.62 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members offered six distinct fair value estimates for Ericsson, ranging from SEK69.99 to SEK115.35. With many seeing opportunity in 5G growth, but risks from geopolitical and regulatory headwinds, it’s clear opinions vary, explore several different viewpoints for a fuller picture.

Explore 6 other fair value estimates on Telefonaktiebolaget LM Ericsson - why the stock might be worth as much as 47% more than the current price!

Build Your Own Telefonaktiebolaget LM Ericsson Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Telefonaktiebolaget LM Ericsson research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Telefonaktiebolaget LM Ericsson research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Telefonaktiebolaget LM Ericsson's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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