AsianFin -- Swedish telecom equipment maker Ericsson announced on Monday that it has secured an eight-year contract worth 12.5 billion Swedish crowns ($1.33 billion) to supply 5G communications equipment to VodafoneThree’s UK mobile network.

The deal follows the June merger of Vodafone and CK Hutchison’s UK operations, which created VodafoneThree. The newly formed company has pledged to invest £11 billion ($14.8 billion) over the next decade to build one of Europe’s most advanced 5G networks.

Under the agreement, Ericsson will deploy its latest 5G radio products across the VodafoneThree network. The rollout will feature AI-driven, energy-optimized hardware and smart antennas, designed to deliver significantly faster data speeds to customers in London, Edinburgh, Cardiff, and Belfast, the company said.

For Ericsson, the European contract comes amid a slowdown in key markets such as India, coupled with U.S. tariffs that have weighed on its profitability from American sales.