Masorange, the leading Spanish telecommunications operator by number of customers, has informed Ericsson that there is no guarantee the second phase of the agreement signed in July 2024 will be implemented. This phase involved the complete replacement of Huawei equipment with that of the Swedish manufacturer. This decision, which could alter the landscape of mobile network providers in Spain, stems from Ericsson's failure to meet the agreed-upon targets, according to industry sources.
The original agreement established a two-phase plan: the first, until the end of 2027, aimed to eliminate ZTE and reduce Huawei's market share from the initial 54% to 37%, while Ericsson's would increase from 42% to 63%. However, this phase is only partially implemented: currently, the market shares are 57% for Ericsson and 43% for Huawei, indicating that the target for 2027 has not been met. Now, Masorange is exploring new options, including the possibility of retaining Huawei or even incorporating Nokia or Samsung as a third supplier.
An agreement that is faltering
The 2024 agreement stipulated that, in a second phase contingent upon Ericsson meeting certain quality standards, the Swedish company would become the sole provider for 100% of the network, completely eliminating Huawei. However, this condition has not been met. Masorange believes that Ericsson has not achieved the agreed-upon quality targets and has therefore informed the Nordic company that the transition to phase 2 is not guaranteed. This situation creates an uncertain scenario, where all options are on the table.
The operator has already informed Ericsson that a bidding process will begin in October, during which the financial proposals of potential suppliers will be evaluated. In addition to the Swedish company, the Finnish firm Nokia and the South Korean company Samsung are being considered, two manufacturers that have never been strategic suppliers for either Orange or MásMóvil. This bidding process also aims to strengthen MásMóvil's presence in mid-band frequencies , such as the 3,5 GHz band, where it currently lags behind Movistar (6.335 nodes compared to 10.415, according to CNMC data from the first quarter of 2026).
Alternatives on the table
If Nokia or Samsung's bids prove aggressive, they could win the network provision contracts in some provinces, such as Valencia and Pontevedra , which would serve as a gateway for them to scale up to 30% of the total network. Ericsson, for its part, could maintain its current position and even achieve exclusivity if it demonstrates compliance with the quality requirements. There is also the possibility that Huawei will continue, either with its current share (43%) or with the one projected for the end of Phase 1 (37%), provided the Chinese manufacturer reimburses the telecom company for the cost of the equipment if it is declared high-risk under the new European regulations.
A Masorange spokesperson told EXPANSIÓN that “no decision has been made regarding changing the supplier strategy” and that there is no rush to decide. Ericsson, for its part, affirms that it remains committed and continues to execute the contract according to plan, with milestones in autonomous networks, 5G Advanced, and core network modernization.
The geopolitical risk
The possibility of retaining Huawei as a strategic supplier clashes with the new European regulatory framework. The proposed Cybersecurity Act (CSA2), presented by the European Commission, establishes a 36-month deadline (until early 2030) for telecoms to remove equipment from suppliers considered high-risk, such as Huawei and ZTE. CSA2 makes this removal mandatory not only in 5G but in all mobile, fixed, and satellite networks . This means that any agreement with Huawei would have to include a clause guaranteeing reimbursement from the manufacturer if it is classified as a high-risk supplier.
In France, the situation is radically different: Huawei has been banned as a supplier to Orange since 2020, by decision of the French authorities. Meanwhile, in Spain, the French telecom's subsidiary is considering keeping the Chinese company despite the new law. This difference reflects the complexity of balancing commercial interests and geopolitical pressures , especially in a country where the state controls more than 20% of Orange.
The future of the network
The final decision will depend on the aggressiveness of the financial bids submitted by the contenders in the October tender. Masorange seeks not only to improve its competitiveness in mid-band frequencies but also to secure its supply in the face of an uncertain regulatory environment. If Nokia or Samsung enter the market aggressively, they could break the current duopoly between Ericsson and Huawei , diversifying the network and reducing dependence on any single manufacturer. On the other hand, if Ericsson accepts more favorable terms, it could maintain its dominant position and even achieve exclusivity.
Analysts point out that the tender will be key to defining the balance of power in the Spanish mobile infrastructure market. Masorange has the advantage of negotiating from a strong position, as it is the largest operator by number of customers and its network is strategic for the country. The operator could also leverage the situation to obtain better prices and technical terms , at a time when investment in 5G and 6G is a priority.
Everything suggests that the current scenario, with Ericsson holding 57% and Huawei 43%, will not remain static. Geopolitical uncertainty, new European legislation, and economic pressures will force Masorange to make a decision that will shape the future of connectivity in Spain for the next decade. Meanwhile, the company insists there is no rush and that it will carefully evaluate all options.