nokia: Nokia and Ericsson optimistic about business in India as 5G networks go live

Finland’s Nokia and Sweden’s Ericsson said they were optimistic about their business in 2023 thanks to 5G contracts with India’s two major telecom operators, Reliance Jio and Bharti Airtel, and the easing of supply chain issues.

Nokia Chairman Pekka Lundmark said the 5G Radio Access Network (RAN) deal with Jio presents a significant volume opportunity in India, describing it as a significant share gain. “We won 45% of the 5G radio network for Bharti Airtel and then of course the fact that we now have an agreement with Reliance Jio is also very important because it is a customer that we were not in the business for. of the radio network in 4G at all. Our market share there was 0%,” Lundmark said.

ET Office

Recently, Nokia and Ericsson made 5G radio deals with Jio. Details of the contracts were not disclosed. Additionally, the two European vendors won 90% of Bharti Airtel’s 5G contracts worth $2.5 billion, with the balance going to South Korea’s Samsung.

“This (Jio deal) is a very significant new customer engagement for us and a significant gain in market share. We have previously stated that our ambition is to grow faster than the mobile network market and gain share, and this are deals like what we believe will put us firmly on the path to getting there,” Lundmark said.

Nokia may consider making contract terms available at the appropriate time, Lundmark said. “It’s not a small piece. It’s a significant market share. So it represents significant volume potential for us.”

The company expects sales in North America to normalize after a strong year. In contrast, Indian carriers’ aggressive 5G network rollout plans will boost volumes in 2023.

For the quarter ending September, Nokia reported 12% year-on-year growth in sales in India to ₹281m from ₹250m, although sales fell 1% to constant exchange rates.

Ericsson CEO Borje Ekholm said he expects India to have the strongest digital infrastructure outside of China, following the launch of 5G networks in the country. He said the 5G cycle had just begun, with less than a quarter of LTE nodes globally being upgraded to 5G midband.

“I would say it shows that there is still a lot of growth potential in the market. I’ll just take an example, India, where we’ll see a rapid build-out of mid-range massive MIMO. India will have probably the strongest digital infrastructure outside of China which will boost India’s digitalization,” Ekholm said.

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