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ERICSSON

Ericsson signs India deal for billions

Telecom giant Ericsson on Thursday said it has completed a deal with India’s Bharti Airtel to expand and upgrade its GSM/GPRS network and managed services for some 7 billion kronor, the Stockholm-based company said in a press release.

The deal will allow Bharti Airtel to extend its GSM footprint in the country and increase its network capacity.

The three-year service agreement will see Ericsson manage design, development, and deployment of Bharti’s network, allowing it to expand into rural India.

“Rollout speed plays an extremely important role in large expansions of this nature and Ericsson has demonstrated expertise in this area,” said Mats Granryd, managing director at Ericsson India. “We are honored and pleased that Bharti Airtel has chosen us as a partner to expand its coverage across India, particularly in the untapped rural areas.”

Ericsson is a long-term Bharti partner, managing more than 70 percent of its GSM/GPRS network in 15 regions in India.

SWEDEN AND UKRAINE

Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.

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