 "Bharti Airtel signs multi-billion deal with Ericsson for 4G, 5G expansion")
Bharti Airtel, India’s second-largest telecom operator, has signed a multi-year, multi-billion-dollar agreement with Swedish telecom equipment provider Ericsson to extend its 4G and 5G contracts, the company said in a press statement on Wednesday.
"As per the new contract, Ericsson will deploy centralised RAN and Open RAN-ready solutions for network transformation which will help customers with wider coverage and enhanced capacity on the network. Ericsson will also undertake the software upgradation of its currently deployed 4G radios thereby enhancing the customer experience," the exchange filing said.
Reports suggest that Airtel has likely finalised renewals totaling $1.2 billion with Ericsson, Nokia, and Samsung, alongside placing orders for new 4G and 5G equipment.
This move aligns with Airtel's strategy to bolster its 4G and 5G infrastructure and upgrade feature phone users in critical regions, amid fierce competition from Reliance Jio and Vodafone Idea. Vodafone Idea is expanding its 4G services and preparing for a 5G rollout by March.
Randeep Sekhon, Bharti Airtel’s Chief Technology Officer (CTO), said, ”The strategic partnership with Ericsson to deploy the latest technology is a testament to Airtel's pursuit of network excellence. This deployment will enable us to further improve the speed, reliability, and coverage of our network, ensuring an exceptional experience for our customers.”
Andres Vicente, head of Ericsson South-East Asia, Oceania, and India, said, "This partnership extension reflects our shared vision to build a robust 4G and 5G infrastructure for Bharti Airtel to serve the connectivity needs of its customer base – including the new 5G use cases as they emerge. We will work closely with Bharti Airtel to deliver great user experiences for their customers."
Expanding subscriber base
As of the end of September, Bharti Airtel's subscriber base stood at 406.5 million, with 263.6 million on 4G and 5G. The company also leads the Indian telecom sector in average revenue per user (ARPU), clocking in at Rs 233 per month, compared to Reliance Jio's Rs 182 and Vodafone Idea's Rs 156.
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Airtel's announcement follows Vodafone Idea’s earlier $3.6 billion deals with the same three vendors.
India, a key growth market
India remains a vital growth hub for telecom equipment providers as demand in the US and Europe. Indian operators benefit from competitive pricing, with vendors offering equipment at discounts of 30-40 per cent compared to global rates.
The revenues of Ericsson, Nokia, and Samsung have been shrinking in 2024, driven by reduced spending from network operators in North America and Europe. During the first half of the year, Ericsson reported an 11 per cent revenue decline to $10.7 billion, Nokia’s revenue fell 21 per cent to $9.9 billion, and Samsung’s network division saw a 31 per cent drop to $1.1 billion.