Swedish telecom equipment maker Ericsson has secured a new multi-billion dollar 5G equipment sales contract from India's Bharti Airtel, two people familiar with the matter said. Last month, Ericsson won part of a $3.6 billion contract to sell 5G equipment to India's Vodafone Idea. It shares the contract with Nokia and Samsung.
The new contracts are expected to boost Ericsson's revenue next year. Ericsson's contracts in India were significantly reduced in the first half of this year.
In the second quarter, the company's sales in Southeast Asia, Oceania and India fell 44%. Ericsson will report third-quarter results on Tuesday.
Most of the deployment is likely to take place next year, according to a person familiar with the matter.
Demand in India's 5G market started surging in 2023, when sales in the region grew as much as five-fold as Airtel and Jio, the telecoms arm of Indian conglomerate Reliance Industries, began expanding 5G services.
That demand has cushioned Ericsson from slowing revenue in its key U.S. market. U.S. telecom operators have been cutting spending.