Airtel signs $1 billion deal with Nokia to enhance network capacity

The deal will see Nokia deploy 300,000 new radio units across the country by 2022,

A worker cleans a logo of Bharti Airtel at its zonal office building in the northern Indian city of Chandigarh May 2, 2013. Top Indian mobile carrier Bharti Airtel Ltd's subscriber growth and usage trends along with easing competition suggest the worst may be over for the industry, even as the firm recorded its thirteenth consecutive quarter of falling profits. REUTERS/Ajay Verma (INDIA - Tags: BUSINESS TELECOMS LOGO)

Nokia and Bharti Airtel on Tuesday announced a multi-year agreement to deploy Nokia’s SRAN solution across nine circles in India. The deal, which, according to an industry source, is pegged at close to $1 billion, will help Airtel to enhance the capacity of its networks, in particular 4G, and improve customer experience.

“The rollout, which will also lay the foundation for providing 5G connectivity in the future, will see approximately 300,000 radio units deployed across several spectrum bands, including 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mhz, and is expected to be completed by 2022,” a joint statement issued by the companies said.

It added that the Nokia supplied networks would give Airtel the best possible platform when the 5G networks is launched across the country, with their low latency and faster speeds.

‘Major step’

Gopal Vittal, MD & CEO (India and South Asia) at Bharti Airtel, said: “We are committed to continuously invest in emerging network technologies to provide a best-in-class experience to our customers. This initiative with Nokia is a major step in this direction. We have been working with Nokia for more than a decade now and are delighted to use Nokia’s SRAN products in further improving the capacity and coverage of our network as we prepare for the 5G era.”

Rajeev Suri, president and Chief Executive Officer, Nokia, said, “This is an important agreement for the future of connectivity in one of the world’s largest telecoms markets and solidifies our position in India. This project will enhance their current networks and deliver best-in-class connectivity to Airtel customers but also lay the foundations for 5G services in the future.”

Second largest market

India is the second largest telecom market in the world and is expected to reach 920 million unique mobile customers by 2025, which will also include 88 million 5G connections, according to the GSMA.

The statement added that Nokia’s SRAN solution helped operators to manage their 2G, 3G and 4G networks from one platform reducing network complexity, increasing cost efficiencies and future-proofing investment.

“The deal will also include Nokia’s RAN equipment, including its AirScale Radio Access, AirScale BaseBand and NetAct OSS solution, which will help Airtel to monitor and manage its network effectively. Nokia Global Services will also play a crucial role in the installation, planning and deployment of the project, which will be executed via the cloud-based Nokia Delivery Platform,” it said.

(With inputs from AFP)