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INDIA

Ericsson signs 1.3 billion dollar deal for Indian mobile network

Telecoms giant Ericsson said Friday it had won a $1.3 billion (9 billion kronor) contract to upgrade and expand Indian operator Bharat Sanchar Nigam Ltd's (BSNL) mobile network.

“This deal is set to be a catalyst for future telecom growth in the dynamic Indian market,” the president of Ericsson India, Mats Granryd, said in a statement.

Ericsson said it would supply a second-generation GSM and third-generation WCDMA/HSPA radio access network and transmission equipment.

Deliveries will start in October, with the first phase of the project set to be completed in 12 months.

In July, Ericsson announced it had won a $2 billion order from India’s Bharti Airtel to expand its network into rural areas, the largest order ever received by the Swedish company.

Ericsson will design, plan, deploy and manage Bharti Airtel’s GSM network across 15 regions in India as well as its pan-India pre-paid platform across 23 regions.

Analysts say India is just at the beginning of a telephone boom.

Home to more than a billion people, the country is the world’s fastest growing telecoms market with just 15 percent of its population owning mobile phones compared to 36 percent in China, another major emerging market.

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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