Bharti Airtel informed stock exchanges on December 4 that it had awarded Ericsson a multi-year, multi-billion extension deal for 4 G and 5 G products and solutions, similar to the one announced earlier last month with Finland's Nokia.
Airtel's deals with Ericsson and Nokia for 4G and 5G technology are focused on enhancing network coverage and capacity, particularly in metropolitan areas experiencing significant data growth due to the rapid adoption of 5G smartphones. According to sources, these new agreements will also enable Airtel to launch a 5G standalone architecture (SA) network, which will support its fixed wireless access broadband service in the country.
Randeep Sekhon, CTO, Bharti Airtel said as part of the partnership, Ericsson will deploy its latest technology for Airtel's network. "This deployment will enable us to further improve the speed, reliability, and coverage of our network..." Sekhon added.
Similar to their previous agreement signed in August 2022, Ericsson and Nokia will meet around 50 percent and 45 percent of Bharti Airtel’s fresh 4G and 5G equipment network needs, respectively
Andres Vicente, Head of Ericsson South-east Asia, Oceania and India said the partnership extension reflects 'shared vision to build a robust 4G and 5G infrastructure' for Bharti Airtel. Ericsson added that the deal will include 'new 5G use cases as they emerge'.
“Both Jio and Airtel are continuing to expand the 5G infrastructure, and Vodafone Idea is also catching up and has announced plans for both 4G and 5G. With all these put together, India will see steady 5G growth,” Vicente told Moneycontrol on October 16. He, however, declined to share specific information related to Airtel’s renewal contract.
Moneycontrol reported on October 16 that negotiations were underway between Sunil Mittal-led Bharti Airtel and its telecom equipment suppliers, which include Nokia, Ericsson, and Samsung. Similar to the agreement reached in August 2022, these companies are anticipated to supply approximately 50 percent, 45 percent, and 5 percent, respectively, of Airtel’s new equipment requirements for its 4G and 5G networks.
Airtel’s renewal comes close on the heels of Vodafone Idea's $3.6-billion equipment deals with three major equipment vendors, to expand its 4G network and gradually roll out 5G services.
European vendors Nokia and Ericsson have experienced a significant decline in sales since the last quarter of 2023, primarily due to reduced spending on 5G. However, they are likely to feel relieved with the fresh substantial contracts they have secured from Airtel and Vodafone Idea.
Shares of Airtel are the biggest drag on Sensex, down nearly 2% during mid-day trade on December 4.
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