Swedish telecom equipment vendor Ericsson has reportedly received a new multi-billion-dollar contract to supply 5G equipment from India's Bharti Airtel, Reuters reported, citing two sources familiar with the matter. This latest deal comes after Ericsson secured part of a USD 3.6 billion contract last month to supply 5G equipment to Vodafone Idea (Vi), sharing the deal with Nokia and Samsung.
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Impact on Future Revenue
These new contracts are expected to boost Ericsson's revenue next year, especially after the company faced a steep decline in contracts from India in the first half of 2024, the report said.
Sales in the Southeast Asia, Oceania, and Indian markets fell by 44 percent during the second quarter, highlighting the need for recovery.
Deployment of 5G Equipment
Much of the deployment is likely to happen next year, the report said, citing one source familiar with the matter.
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Demand in the Indian 5G market surged in 2023, with sales from the region growing fivefold as Airtel and Jio, the telecom unit of Reliance Industries, scaled up their 5G offerings. This demand cushioned a slowdown in revenue from Ericsson's main US market, where telecom operators have been lowering spending.
