Ericsson has signed a multi-year, multi-billion-dollar extension agreement with Bharti Airtel to provide radio access network (RAN) products and solutions for its 4G and 5G networks. The agreement includes the deployment of centralized RAN and Open RAN-ready solutions to enhance network capacity and coverage.
Under the deal, Ericsson will also deliver software upgrades for Airtel’s existing 4G radios to improve performance. Bharti Airtel CTO Randeep Sekhon stated, “This deployment will enable us to improve speed, reliability, and coverage, ensuring an exceptional experience for our customers.”
Ericsson has secured a multi-billion-dollar contract extension from Bharti Airtel to deploy advanced 4G and 5G RAN solutions in India. This partnership will enhance Airtel's network capacity and coverage, driving a faster and more reliable service for users.
— Bharti Airtel (@airtelnews) December 4, 2024
Randeep Sekhon, CTO,… pic.twitter.com/3qQI6OqdMV
The agreement follows reports from October regarding Airtel’s negotiations with telecom equipment suppliers Ericsson, and Samsung. As in 2022, these vendors are expected to fulfill approximately 50%, 45%, and 5%, respectively, of Airtel’s equipment requirements for 4G and 5G networks.
Andres Vicente, Head of Ericsson Southeast Asia, Oceania, and India, emphasized the importance of the collaboration, saying, “This extension reflects our shared vision to build a robust 4G and 5G infrastructure for Airtel.” Ericsson noted that the contract would support new 5G use cases as they emerge.
This renewal comes on the heels of Vodafone Idea’s recent $3.6 billion equipment agreements with major vendors to expand its 4G network and gradually implement 5G services.
European vendor Ericsson have been facing declining sales since late 2023 due to reduced global 5G spending. However, large contracts with Airtel and Vodafone Idea are expected to provide some relief. Despite the announcement, Airtel’s shares fell nearly 2% during mid-day trading on December 4, becoming one of the biggest drags on the Sensex.
