SHARE
COPY LINK

INDIA

Ericsson lands major Indian contract

An already successful week for Swedish telecom giant Ericsson got better on Wednesday as it followed up two major China deals with a $1.3 billion contract to upgrade Bharti Airtel's mobile network in India.

Ericsson said it will supply second generation, or 2G, radio base stations to improve the quality of phone calls and speed-up data access, and prepare the network for the rollout of the even faster 3G services at a later date.

“Airtel is poised to spearhead the next telecom revolution in India and take the 2G experience to greater heights,” Ericsson chief executive Hans Vestberg said in a statement.

“In this partnership, we will set a new benchmark for the world in terms of network size and quality, types of services and end-user experience,” he said.

Ericsson will expand and upgrade Airtel’s network in 15 of India’s 22 licensed jurisdictions, or telecom circles, the Swedish company said.

“Airtel users will enjoy an enhanced voice quality and faster data access,” Ericsson said.

“The agreement will enable Airtel to put in place a converged network and expanded coverage in rural India,” it said.

Bharti Airtel, which has had contracts with Ericsson for 15 years, counts 134 million customers in India, Sri Lanka and Bangladesh.

“The extension of our fifteen years association with Ericsson is testimony to the strength of the relationship as well as the success of the model,” said Bharti Airtel chief executive Sanjay Kapoor.

“We continue to be delighted with Ericsson’s expertise in network expansion and transformation, helping us to reduce operating expenditures and enhance network quality,” he said.

The announcement came two days after Ericsson landed contracts worth $1.8

billion to provide equipment to two of China’s largest operators, China Mobile and China Unicom.

For its part, Bharti Airtel vaulted on Tuesday into the ranks of the world’s top five cellular players by subscribers by clinching a $10.7-billion deal to buy the African assets of Kuwait’s Zain telecom

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

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.

SHOW COMMENTS