STOCKHOLM: Swedish telecommunications equipment manufacturer Ericsson has landed a new multi-billion dollar contract to supply 5G equipment to India’s Bharti Airtel, according to two sources with knowledge of the deal.
This announcement follows a previous agreement where Ericsson secured a share of a $3.6 billion contract last month with Vodafone Idea, collaborating with competitors Nokia and Samsung. These new contracts are anticipated to significantly boost Ericsson’s revenue next year, especially after a sharp decline in contracts from India during the first half of this year.
In the second quarter, sales in Southeast Asia, Oceania, and India fell by 44%. Ericsson is set to reveal its third-quarter earnings this Tuesday. According to one insider, much of the equipment deployment is expected to take place next year.
The demand for 5G services in India surged in 2023, with sales in the region increasing by up to five times as Airtel and Jio, a telecom unit of Reliance Industries, expanded their 5G offerings. This growth has helped mitigate revenue losses in Ericsson's primary U.S. market, where telecom operators have been reducing spending.
Global telecom equipment revenue fell by 16% year-over-year in the second quarter, marking the fourth consecutive quarter of double-digit declines, according to research firm Dell'Oro.
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