Bharti Airtel is reportedly set to award approximately $1 billion (Rs 8,375 crore) in contracts to Ericsson, Nokia, and Samsung for 4G network equipment over the next three years. This move is part of Airtel's strategy to accelerate the transition of its remaining feature phone users to smartphones and enhance revenue, the Economic Times has reported citing sources.
The new contracts are aimed at addressing nearly 300,000 additional 4G base station requirements, with Ericsson, Nokia, and Samsung set to supply around 50 percent, 45 percent, and 5 percent of the equipment, respectively, states the ET report. Payments for these contracts will largely be secured through letters of credit issued by banks, ensuring timely and complete disbursement, as per the report.
Moneycontrol could not independently verify the report.
Airtel, India's second-largest telecom operator, is also exploring additional 5G network equipment purchases but is currently prioritising the expansion of 4G coverage, especially in regions with limited 4G presence, it has been further stated in the report.
According to industry experts cited in the report, Sweden's Ericsson is expected to supply 4G base stations for 11 circles, including Rajasthan, Haryana, Delhi, Uttar Pradesh (West), Himachal Pradesh, Jammu & Kashmir, Assam, Northeast, Andhra Pradesh, Tamil Nadu, and Karnataka. Meanwhile, Finland's Nokia is likely to fulfill Airtel’s 4G base station requirements in nine circles: Mumbai, Gujarat, Madhya Pradesh, Uttar Pradesh (East), Bihar, West Bengal, Odisha, Maharashtra, and Kerala. South Korea's Samsung will provide equipment for the remaining two markets, Kolkata and Punjab.
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