Vodafone is adding Huawei to its roster of primary vendors for Project Spring, its $11 billion network upgrade. Huawei joins Ericsson and NSN in supplying Vodafone, which is upgrading its network in 15 countries in Europe and Africa. During the next two years, the UK-based carrier plans to invest heavily in 3G and 4G infrastructure, small cells, and fiber optics.
Most of the Project Spring spending is expected this year and next, but Huawei’s agreement with Vodafone extends for five years. Ericsson and NSN also signed five year deals with Vodafone. Vodafone recently accelerated the timetable for Project Spring, aiming for a March 2016 completion date. The company also increased its financial commitment to the project from 6 billion pounds to 7 billion pounds ($11.7 billion.) Vodafone is funding Project Spring in part with the proceeds of its sale of its 45% stake in Verizon Wireless to Verizon Communications.
Now that Vodafone has severed its ties with Verizon, the company has seen as a primary target for AT&T as the second largest carrier in the U.S. looks to expand overseas. Recently, however, the U.K. Takeover Panel pressed AT&T on the matter and the carrier said it has no current plans to make a bid.
For Huawei, the Vodafone deal is an important win for a company that has proven its ability to compete on price and performance, but has run into political hurdles in the United States. U.S. senators have asked carriers in this country to choose other vendors, based on their concerns about control of U.S. networks by a Chinese firm.
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