MasOrange, Spain’s largest mobile operator by number of customers, has redefined its mobile network strategy and could look to new hardware providers.

Until now, the company had been proceeding according to the agreement signed in 2024, which established a first phase—through 2027—to phase out ZTE equipment and reduce Huawei’s presence in favor of Ericsson, reports Expansión.

The plan called for Huawei’s share of radio nodes to drop from 54 percent to 37 percent and for Ericsson’s share to rise from 42 percent to 63 percent. ZTE, with a four percent share of the network completely phased out.

As of today, that phase has been partially implemented, and the actual market shares stand at 57 percent for Ericsson and 43 percent for Huawei.

The reevaluation comes amid increased regulatory pressure on Chinese suppliers, driven by the proposed European cybersecurity law. The second phase of the agreement—which would allow Ericsson to completely replace Huawei and become the sole supplier—is now in doubt.

MasOrange has reportedly informed the Swedish company that it cannot guarantee its continued participation in that phase, citing failures to meet objectives.

The carrier will launch a tender in October to determine the future of its network, based on the financial offers and technical guarantees provided by the suppliers. The tender also aims to strengthen coverage in the 3.5 GHz band, where MasOrange has a smaller presence than Movistar.

This new scenario opens the door for Huawei to retain part of its current or projected market share, but also for the entry of Nokia or Samsung—manufacturers without geopolitical risks who have not previously been strategic suppliers to the group. If they submit competitive bids, they could be awarded deployments in provinces such as Valencia or Pontevedra and account for up to 30 percent of the network. Ericsson, for its part, could still maintain its position and aim to become the sole supplier if it meets the terms of the initial agreement.

MasOrange noted that it has not yet made a decision regarding possible changes to its supplier strategy and that there is no urgency to determine whether to continue with the current plan. Ericsson, for its part, stated that it remains committed to the operator and continues to execute the contract as planned, highlighting joint progress on autonomous networks, 5G Advanced capabilities, and the modernization of the network core.

The option for MasOrange to retain Huawei as a strategic supplier would entail geopolitical risks, especially in light of the European Commission’s new Cybersecurity Act (CSA2) proposal. The regulation, still under consideration, would require the removal within 36 months—by early 2030—of equipment from manufacturers deemed “high-risk,” such as Huawei and ZTE, not only from 5G networks but also from mobile, fixed, and satellite networks.

Any future agreement with Huawei would be contingent on the manufacturer covering the cost of the equipment if it were ultimately classified as a high-risk supplier.

The presence of Huawei and ZTE equipment in European networks is significant, and its complete removal—from both fixed and mobile infrastructure—would come at a high cost.

According to a recent GSMA report, replacing all technology from both manufacturers could cost between €30 billion ($34bn) and €40 billion ($46bn), a figure that doubles the European Commission’s estimates, which range from €17bn ($19.6bn) to €21.5bn ($24.8bn). The GSMA also warns of an indirect impact: inflation resulting from reduced competition, which could add another €24bn ($27bn), bringing the total cost to €64bn ($73bn).

In Spain, the presence of Chinese suppliers varies by carrier. Vodafone is the most dependent, with nearly 70 percent of its radio nodes equipped with Huawei. At MasOrange, that share has fallen to 43 percent. Telefónica, for its part, does not use Chinese technology in its mobile network—which is split between Ericsson and Nokia—although it still uses Huawei for part of its core network, which it plans to replace in the coming years.

This piece was automatically translated from DCD’s Spanish site and edited by a member of DCD staff.