Nokia is reportedly in talks with Bharti Airtel for a major contract to supply 5G telecom equipment, supporting the Indian operator’s network expansion. This potential partnership underscores the intense competition in India’s telecom sector, as companies like Nokia, Ericsson, and Samsung race to provide cutting-edge 5G solutions and capture a larger share of the market.
Nokia and Airtel's potential 5G partnership
- Ongoing negotiations: Three sources who are familiar with the situation have revealed that Nokia is discussing a multi-billion dollar deal with Airtel for 5G equipment. This agreement could be crucial as Airtel continues to upgrade its network across India.
- Focus on the latest technology: The potential contract would involve Nokia's advanced AirScale mobile radios, which can seamlessly upgrade existing networks to 5G-Advanced while helping to lower energy costs.
A major market for telecom expansion in India
Second-largest smartphone
India is a pivotal market for 5G rollouts, with telecom giants like Airtel, Vodafone Idea and Reliance Jio, which invest heavily to enhance their networks.
Market dynamics
While India helped Nokia and Ericsson to balance declining demand from the U.S. last year (2023), the volume of orders has slowed significantly after an initial growth surge.
Competition from Ericsson and Samsung
- Ericsson secures contract: Swedish telecom equipment maker Ericsson has recently bagged a multi-billion dollar contract with Airtel, as reported by Reuters.
- Nokia and Samsung in the mix: Alongside its negotiations with Nokia, Airtel is also in discussions with Samsung for 5G equipment. Samsung, which won its first 5G contract with Airtel in 2022, is aiming to grow its presence in the network equipment sector, though it currently trails behind Nokia and Ericsson.
Nokia’s recent market moves
- Earnings report anticipated: Nokia's shares saw a 3 per cent rise following reports of the potential deal with Airtel. The company is set to release its third-quarter earnings on Thursday. In Q2, Nokia faced an 18 per cent decline in net sales, primarily due to decreased demand from India.
- Recent contracts: Last month, Nokia secured a portion of a USD 3.6 billion contract with Vodafone Idea, shared with Ericsson and Samsung.
No official comments yet
Nokia has declined to comment on the discussions, while Bharti Airtel and Samsung have yet to respond to requests for comment.
A “Routine” arrangement?
One of the sources described the potential deal with Nokia as a “routine and ongoing arrangement” between Airtel and its network equipment partners.
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Reported by Reuters
