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Airtel signs $1-billion deal with Nokia to get 5G ready

Deal to boost network capacity by deploying 300,000 new radio units across India

Representative image | Reuters

Telecom operator Bharti Airtel has secured a multi-year contract worth $1 billion with Finnish network equipment maker Nokia to enhance its network capacity. The deal will see Nokia deploy 300,000 new radio units across the country by 2022, boosting network capacity and preparing the ground for the move to next-generation 5G.

"This is an important agreement for the future of connectivity in one of the world's largest telecoms markets and solidifies our position in India," outgoing Nokia CEO Rajeev Suri said. As per the deal, Nokia will deploy its SRAN solution across nine networks in India. The SRAN solution helps operators manage their 2G, 3G and 4G networks from one platform reducing network complexity, increasing cost efficiencies and future-proofing investment. 

"We have been working with Nokia for more than a decade now and are delighted to use Nokia's SRAN products in further improving the capacity and coverage of our network as we prepare for the 5G era," Gopal Vittal, MD and CEO (India and South Asia) at Bharti Airtel, said in a statement.

Nokia is the largest 4G radio vendor in the Airtel network in India, followed by Ericsson, Huawei and ZTE. The new deployment of radio units will spread across 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mhz, which will help telco enhance its 4G services and lay the foundation for 5G services in future. “These Nokia supplied networks will give Airtel the best possible platform for when 5G networks launch across the country, with their low latency and faster speeds,” Nokia said in a statement.

With a population of 130 crores, India is the world's second largest telecoms market, which Nokia predicts will grow to 92 crores unique mobile customers within five years as online demand soars.

The deal comes after a punishing six months for the Finnish networks giant after it downgraded its 2020 earnings forecast last October as attempts to break into the 5G equipment market faltered in the face of fierce competition from Huawei and Ericsson.

Nokia went on to beat expectations in a "challenging" 2019 and in February posted its first full-year net profit since 2015 of 7 million euros, before announcing a change of CEO in March.