Nokia has bagged a multi-year, multi-billion extension deal from Bharti Airtel to deploy 4G and 5G equipment across Indian cities, the Indian telecom major informed exchanges on November 20.
Gopal Vittal, Vice Chairman and MD, Bharti Airtel said this deal will improve connectivity solutions for Airtel. "This strategic partnership with Nokia will future proof our network infrastructure and provide customers with unparalleled user experience along with a network that will be eco-friendly to minimize environmental impact," Vittal said.
The deal promises to enhance Airtel’s 5G capacity, and support its network evolution.
Pekka Lundmark, President and CEO of Nokia said the agreement solidifies collaboration between both the companies, and "will enhance the energy efficiency of Airtel’s network". The deal enables premium 5G connectivity and high quality service for Airtel's subscribers, Nokia CEO said.
Nokia and Bharti Airtel have a more than two-decade long partnership for network equipment, and they both recently launched the 'Green 5G Initiative' to improve energy efficiency of Airtel's network and reducing carbon emissions.
Moneycontrol on October 16 had reported 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.
Airtel said it will also be leveraging Nokia's MantaRay Network Management for monitoring and management of the network using AI-based tools.
For the year so far, shares of Bharti Airtel are higher by over 50%. Late last month, it reported September quarter results, clocking a 167 percent surge in net profit at Rs 3,593 crore, driven by strong performance in its India and Africa businesses. The company’s revenue from operations for the September quarter rose 12 percent on-year to Rs 41,473 crore.
Globally, Nokia has been cutting costs amid slowing sales, and has significantly given up its total equipment market share in China, partly due to challenging US-China trade relations. Reuters recently reported that Nokia has plans to eliminate nearly 2,000 jobs in Greater China and an additional 350 positions in Europe, as part of efforts to streamline operations. The company has been making efforts to diversify its customer base.
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