MasOrange reconsiders Huawei, Nokia in Spanish mobile network overhaul

MasOrange, Spain's largest mobile operator by customer count, is reassessing its mobile network equipment strategy, potentially opening the door to new suppliers such as Nokia or Samsung while reconsidering the role of Huawei, according to a report from Expansión. The move signals a significant shift from the roadmap the company agreed to in 2024, which was designed to gradually replace Chinese vendors with Ericsson as the dominant supplier.

The 2024 agreement outlined a two-phase transition: by 2027, Huawei's share of radio nodes was to decline from 54 percent to 37 percent, while Ericsson's share was set to rise from 42 percent to 63 percent. ZTE, which held four percent of the network, was to be fully phased out. As of today, that first phase has been only partially executed, with actual market shares standing at 57 percent for Ericsson and 43 percent for Huawei. The second phase, which would have made Ericsson the sole supplier by fully replacing Huawei, is now in doubt.

The reevaluation comes amid heightened regulatory pressure on Chinese equipment makers, driven largely by the European Commission's proposed Cybersecurity Act (CSA2). That regulation, still under consideration, would require the removal of equipment from manufacturers deemed "high-risk"—including Huawei and ZTE—within 36 months, potentially by early 2030. The mandate would apply not only to 5G networks but also to mobile, fixed, and satellite infrastructure across the bloc.

MasOrange has reportedly informed Ericsson that it cannot guarantee the Swedish vendor's continued participation in the second phase, citing unmet objectives. The operator plans to launch a tender in October to determine the future direction of its network, based on financial offers and technical guarantees from suppliers. The tender also aims to strengthen coverage in the 3.5 GHz band, where MasOrange currently lags behind competitor Movistar.

This new scenario opens the possibility for Huawei to retain a portion of its current or projected market share. It also creates an entry point for Nokia or Samsung—manufacturers without the same geopolitical exposure who have not previously served as strategic suppliers to the group. If they submit competitive bids, they could secure deployments in provinces such as Valencia or Pontevedra and account for up to 30 percent of the network. Ericsson, meanwhile, could still maintain its position and potentially become the sole supplier if it meets the terms of the original agreement.

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

Keeping Huawei as a strategic supplier would carry geopolitical risks, particularly in light of the CSA2 proposal. Any future agreement with Huawei would likely be contingent on the manufacturer covering the cost of equipment if it were ultimately classified as high-risk. The broader financial stakes are substantial: according to a recent GSMA report, replacing all Huawei and ZTE technology across European networks could cost between €30 billion ($34 billion) and €40 billion ($46 billion)—roughly double the European Commission's own estimates of €17 billion ($19.6 billion) to €21.5 billion ($24.8 billion). The GSMA also warns of indirect costs from reduced competition, which could add another €24 billion ($27 billion), bringing the total potential burden to €64 billion ($73 billion).

In Spain, reliance on Chinese suppliers varies by operator. Vodafone is the most dependent, with nearly 70 percent of its radio nodes equipped with Huawei. MasOrange's exposure has fallen to 43 percent. Telefónica does not use Chinese technology in its mobile network, which is split between Ericsson and Nokia, though it still uses Huawei for part of its core network, a dependency it plans to phase out in the coming years.