Bharti Airtel is reportedly set to award new multi-year contracts worth over USD 2 billion to Nokia, Ericsson, and Samsung to supply 4G and 5G radio network equipment. The operator, which is now looking to deepen its 4G and 5G coverage in key telecom circles, is experiencing increased data growth while also launching Standalone (SA) 5G services in the country, Moneycontrol reported, citing people familiar with the matter.
Also Read: Ericsson Secures New 5G Contract with Bharti Airtel: Report
Ericsson Multi-Billion Dollar Deal
According to a recent report, Swedish telecom gear maker Ericsson has already won a multi-billion-dollar contract from Bharti Airtel.
“The negotiations are done, and new renewal deals with Nokia, Ericsson and Samsung will be signed in the coming days. These new renewed deals are for the long term. The size of these deals will cross USD 2 billion over the next few years," a source close to the development said, according to the report.
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Ongoing Expansion with Vendor Partners
Ericsson and Nokia are ready to supply new equipment to Airtel in the coming weeks. Airtel's expansion is part of its ongoing arrangements with network vendor partners, the report said, citing an Airtel source.
Airtel's latest renewal comes just weeks after Vodafone Idea signed USD 3.6 billion equipment deals with all three vendors to expand its 4G network and gradually roll out 5G services.
Breakdown of Equipment Needs
According to the report, similar to the agreement signed in August 2022, Ericsson, Nokia, and Samsung will meet around 50 percent, 45 percent, and 5 percent, respectively, of Bharti Airtel's fresh 4G and 5G equipment network needs.
Nokia India head Tarun Chhabra was reportedly quoted separately as saying that all three private operators are actively engaged in network expansion efforts.
"We are having this expansion as a continuous process…there is always a network requirement as data traffic increases," Chhabra reportedly said, adding that there is expansion taking place in the rural parts of the country by telcos.
Also Read: Airtel to Become First in India to Offer 5G SA and NSA
Airtel's 5G SA Network Launch
The renewal deals also focus on providing 5G equipment to help Airtel launch its soon-to-be-deployed SA network, the report said.
If Airtel launches the 5G SA network, it would become the first operator in India to offer both 5G NSA and 5G SA networks, as TelecomTalk reported earlier.