Its revenue next year may receive a boost, after a decline in India contracts in the first half of 2024
SWEDISH telecommunications gear maker Ericsson has received a new multibillion-dollar contract for selling 5G equipment from India’s Bharti Airtel, two sources familiar with the matter said.
This comes after Ericsson last month got part of a US$3.6 billion contract for selling 5G equipment to India’s Vodafone Idea. It shared the contract with Nokia and Samsung.
The new contracts are expected to boost Ericsson’s revenue next year, after a big fall in contracts from India in the first half of the year.
Sales in South-east Asia, Oceania and India decreased by 44 per cent in the second quarter. Ericsson will announce its third-quarter results on Tuesday (Oct 15).
Much of the deployment is likely to happen next year, a source added.
Ericsson declined to comment. Airtel did not immediately respond to a request for comment.
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Shares in Ericsson rose as much as 1.8 per cent after the Reuters story.
Demand from the Indian 5G market started to skyrocket in 2023 when sales from the region grew, as the telecom units of Indian conglomerate Reliance Industries – Airtel and Jio – started to scale up 5G services.
The demand cushioned a slowdown in revenue from Ericsson’s main US market, where telecom operators have been lowering spending.
Global telecom equipment revenue in the second quarter dropped 16 per cent year on year, recording a fourth consecutive quarter of double-digit contractions, said research company Dell’Oro. REUTERS
