STOCKHOLM, Sept 22 (Reuters) -

VodafoneThree has awarded a 2-billion-pounds ($2.7 billion)

deal to Swedish telecom gear maker Ericsson and

Finland's Nokia to supply 5G communications equipment

into the next decade, the companies said on Monday.

Ericsson, the primary vendor, said in a statement its

contract is worth 12.5 billion Swedish crowns ($1.3 billion).

In a separate release, Nokia did not disclose the financial

details of its partnership but said the deal marks its return as

Vodafone ( VOD ) and Three's supplier in the UK.

Nokia will provide its radio access network (RAN) and core

networks equipment to about 7,000 sites in the country.

In June, Vodafone ( VOD ) and CK Hutchison ( CKHUF )

completed the merger of their UK operations, creating a new

business called VodafoneThree and laid out plans to invest 11

billion pounds ($14.8 billion) over 10 years to build one of

Europe's most advanced 5G networks.

Ericsson will introduce new 5G radio products into the

VodafoneThree network, comprising AI and energy-optimized

hardware and smart antennas, aimed at providing customers in

London, Edinburgh, Cardiff and Belfast with significantly

enhanced data speeds, the company said.

The European contract is a boost for the two Nordic rivals,

which are both wrestling with a general market slowdown and the

impact of tariffs on their profit in the United States.

($1 = 9.3869 Swedish crowns)

($1 = 0.7431 pounds)