Ericsson (NASDAQ: ERIC) announced a five-year partnership extension with Virgin Media O2 to become the primary radio access network partner for the UK service provider's nationwide radio network. The agreement will earn Ericsson several hundred million euros across the five-year period.

The partnership extension secures the majority of the radio network-focused element of Virgin Media O2's Mobile Transformation Plan. Under the agreement, Ericsson will power the majority of Virgin Media O2's UK radio network infrastructure.

The network upgrade will feature deployment of Ericsson Radio System products, including multiband Massive MIMO radios such as the AIR 3229 and triple-band Radio 4486 at new and existing locations. The deployment will also include Ericsson's AI and machine learning-based software for network optimization.

"Virgin Media O2 is a close and trusted customer and partner of Ericsson's," said Patrick Johansson, Head of Europe, Middle East and Africa at Ericsson. "That trust is reflected in the RAN footprint increase in this partnership extension where Ericsson will power the majority of Virgin Media O2's radio network."

Jeanie York, Chief Technology Officer at Virgin Media O2, stated: "Our Mobile Transformation Plan is all about delivering a step-change in network performance for our customers, ensuring they have fast, reliable connectivity wherever they are."

The upgrade aims to maximize capabilities of additional 5G mid-band spectrum acquired by Virgin Media O2 in 2025. Virgin Media O2's 5G Standalone network is currently available to 87 percent of the UK population. The company reported that mobile traffic has more than doubled in the past five years.

The partnership is structured to support Virgin Media O2's evolution to Cloud RAN and scaling into future 5G-Advanced technology, according to the press release statement.