Swedish telecom equipment maker Ericsson has secured a new multi-billion-dollar contract to supply 5G equipment to India’s Bharti Airtel, according to two sources familiar with the deal. This follows Ericsson’s involvement in a $3.6 billion contract last month with Vodafone Idea, where it shared the deal with Samsung.
The new agreements are expected to boost Ericsson’s revenue next year, following a significant decline in contracts from India in the first half of the year. Sales in Southeast Asia, Oceania, and India fell by 44% in the second quarter.
Much of the 5G deployment under these contracts is expected to take place next year, according to one source. The demand for 5G equipment in India surged in 2023, with sales from the region growing fivefold as Airtel and Reliance Jio, the telecom arm of Indian conglomerate Reliance Industries, ramped up 5G services. This growing demand helped offset a slowdown in revenue from Ericsson’s primary U.S. market, where telecom operators have reduced spending.
Globally, telecom equipment revenue dropped 16% year-over-year in the second quarter, marking the fourth consecutive quarter of double-digit declines, according to research firm Dell’Oro.
