In Short:
Nokia is negotiating a multi-billion dollar contract with Bharti Airtel to provide 5G telecom equipment as Airtel expands its network. This follows Ericsson’s recent similar deal with Airtel. Although demand from India has slowed, major companies are investing heavily in 5G. Nokia and Ericsson are also in discussions with Samsung, which aims to grow its network equipment business.
STOCKHOLM: Finland’s Nokia is currently engaged in discussions with Bharti Airtel regarding a potential multi-billion dollar contract aimed at supplying 5G telecom equipment. This agreement seeks to support Airtel’s efforts in expanding its network, according to three sources in the know.
As reported by Reuters, Ericsson, another Swedish telecom gear manufacturer, has already secured a multi-billion dollar contract from Airtel. With India being the world’s second-largest smartphone market, major telecom companies including Airtel, Reliance’s Jio, and Vodafone Idea have invested heavily to upgrade their networks to 5G capabilities.
Last year, the significant volume of orders from India helped both Nokia and Ericsson mitigate decreases in demand from U.S. clients. However, there has been a notable slowdown in order volumes from India following a period of robust growth.
The prospective contract with Airtel would focus on Nokia’s latest AirScale mobile radios, which facilitate the upgrade of existing networks to 5G-Advanced while also minimizing energy costs, as per the sources.
Both Nokia and Airtel have refrained from providing comments on this matter. One source referred to the possible Nokia deal as a “routine and ongoing arrangement” involving network vendor partnerships.
Nokia is scheduled to announce its third-quarter earnings on Thursday. In the second quarter, the company reported an 18% decline in net sales, primarily attributed to a slowdown in demand within India. In addition to Nokia and Ericsson, Airtel is also exploring acquisition options for 5G equipment from Samsung, another source disclosed.
Despite being determined to expand its network equipment business, Samsung has yet to achieve the market penetration of Nokia and Ericsson. The company secured its first 5G contract with Airtel in 2022. Notably, India has restricted its mobile operators from utilizing 5G telecom equipment produced by China’s Huawei.
