On Wednesday, Bharti Airtel, one of India’s largest telecom operators, entered into a landmark agreement with Swedish telecom equipment maker Ericsson. The deal, valued at a "multi-billion" dollar sum, aims to significantly enhance Bharti Airtel’s 4G and 5G coverage across the country, reinforcing the operator’s position as a leader in the Indian telecom market. Although the exact financial terms of the deal were not disclosed, it marks an important step forward in the ongoing technological advancements in India’s telecom infrastructure.
As part of the agreement, Ericsson, which has been a partner of Bharti Airtel for more than 20 years, will provide a range of advanced solutions to modernize the telecom operator's network. Specifically, Ericsson will deploy centralised radio access network (RAN) and Open RAN-ready solutions. Open RAN is a cutting-edge technology that enables telecom operators to integrate network equipment from different suppliers, providing more flexibility, reducing costs, and fostering innovation in network deployment. This solution is particularly important as telecom operators like Bharti Airtel aim to future-proof their networks and provide seamless 5G connectivity.
In addition to providing new equipment, Ericsson will also upgrade the software of the 4G radios that have already been deployed by Bharti Airtel, further enhancing the overall performance and efficiency of the existing network. This upgrade is expected to boost network reliability and speed, enabling Bharti Airtel to provide a better experience for millions of customers across India. The company’s Chief Technology Officer, Randeep Sekhon, highlighted that this collaboration would result in substantial improvements in the speed, reliability, and coverage of Bharti Airtel’s network, laying the foundation for a robust 5G rollout in the future.
This significant deal comes in the wake of Ericsson winning part of a $3.6 billion contract with Vodafone Idea earlier this year. The contract, which was shared with Nokia and Samsung, also focuses on providing 5G equipment to one of India’s largest telecom operators. As a result of these deals, Ericsson’s revenue is expected to see a substantial increase in the coming year, after experiencing a notable decline in contracts from India in the first half of 2024.
The timing of the agreement is also notable in light of India’s rapidly growing telecom market, which is the second-largest smartphone market in the world. With the Indian government pushing for the widespread rollout of 5G technology, operators like Bharti Airtel are keen to upgrade their infrastructure to meet the increasing demand for faster and more reliable internet connections. This deal with Ericsson represents a crucial step in ensuring that Bharti Airtel can stay ahead in the competitive Indian telecom landscape, providing its customers with cutting-edge connectivity solutions.
Moreover, the agreement strengthens Ericsson’s foothold in India, a key market for telecom equipment suppliers. The Indian telecom sector has seen significant investments and advancements in technology over the past few years, and this deal signifies the increasing reliance on global technology providers like Ericsson to support the country’s telecom infrastructure. Ericsson’s expertise and experience in delivering advanced network solutions will be instrumental in meeting the growing demand for 5G services and facilitating the digital transformation of the country.
Looking ahead, this partnership between Bharti Airtel and Ericsson is expected to not only bolster the telecom operator’s network performance but also contribute to the larger goal of expanding 5G coverage across India. As the demand for high-speed internet continues to grow, particularly in urban and rural areas, Bharti Airtel’s investment in next-generation technology will be crucial in maintaining its leadership in the Indian telecom market. The success of this initiative will likely serve as a model for other operators in the country, further driving the adoption of 5G and digital services nationwide.
