Bharti Airtel Partners with Nokia for Multi-Billion 5G Expansion

The Indian telecom giant told exchanges on November 20 that Nokia has secured a multi-year, multi-billion extension deal from Bharti Airtel to roll out 4G and 5G equipment throughout Indian cities. According to Gopal Vittal, MD and Vice Chairman of Bharti Airtel, this agreement will enhance Airtel's connectivity offerings. "This strategic partnership with Nokia will future proof our network infrastructure and provide customers with unparalleled user experience along with network that will be eco-friendly to minimize environmental impact," added Vittal. The agreement aims to help Airtel's network development and increase its 5G capacity.

The arrangement "will enhance the energy efficiency of Airtel’s network" and "solidifies collaboration between both companies," according to Pekka Lundmark, President and CEO of Nokia. According to the CEO of Nokia, the agreement gives Airtel's customers access to premium 5G connectivity and excellent service.

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With regard to network equipment, Nokia and Bharti Airtel have been partners for over 20 years. Recently, both companies introduced the 'Green 5G Initiative' to increase Airtel's network's energy efficiency and lower carbon emissions. On October 16, Moneycontrol revealed that talks were in progress between Sunil Mittal's Bharti Airtel and its telecom equipment suppliers, including Samsung, Nokia, and Ericsson. These businesses are expected to provide roughly 50%, 45%, and 5%, respectively, of Airtel's new equipment needs for its 4G and 5G networks, in line with the deal made in August 2022.

Following Vodafone Idea's $3.6 billion equipment deals with three key equipment vendors to develop its 4G network and progressively bring out 5G services, Airtel's renewal follows closely behind.

According to Airtel, it would also use AI-based solutions for network management and monitoring by utilizing Nokia's MantaRay Network Management.

Bharti Airtel share price have increased by more than 50% so far this year. It revealed its September quarter results late last month, showing a 167 percent increase in net profit at Rs 3,593 crore, fueled by robust operations in Africa and India. The company's operating revenue for the September quarter was Rs 41,473 crore, a 12% year-over-year increase.

Due in part to difficult US-China trade relations, Nokia has been reducing expenses globally as sales have slowed and has drastically lost its share of the Chinese equipment market. As part of its attempts to streamline operations, Nokia aims to remove 350 jobs in Europe and roughly 2,000 jobs in Greater China, according to a recent Reuters article.

To Summarize

Bharti Airtel has signed a multi-billion, multi-year deal with Nokia to enhance its 4G and 5G network infrastructure across India. This strategic partnership aims to improve connectivity, energy efficiency, and environmental sustainability, aligning with Airtel's 'Green 5G Initiative.' Nokia will provide AI-based solutions for network management and monitoring. Airtel's shares have surged over 50% this year, fueled by strong financial results. This collaboration further solidifies the companies' two-decade-long partnership in advancing India's telecom landscape.