The telecom industry plays a important role in connecting people and businesses across globally. In a recent major development in the telecom sector, as per The Economic Times report citing people of the matter reported that the country second largest telecom operator, Bharti Airtel, led by conglomerate Sunil Mittal is set to place USD 1 billion worth of orders for 4G network equipment from global vendors Ericsson, Nokia, and Samsung, over the next three years. In the Indian currency this amount approximately stands at Rs 8,375 crore.
According to The Economic Times report, this investment by the company is aimed at strengthening Airtel’s 4G coverage and transitioning its remaining feature phone users to smartphones.
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Major 4G Network Expansion
The equipment contracts will address the telecom giant need for nearly 300,000 additional 4G base stations across the country. According to sources mentioned by The Economic Times, Ericsson is expected to fulfill 50 per cent of this requirement, Nokia 45 per cent, and Samsung the remaining 5 per cent.
As per The Economic Times report, the telecom giant is also prioritising 4G coverage even as it holds discussions with vendors to further expand its 5G network.
Strategic 4G Coverage in Key Regions
Moreover, the Economic Times report added that Ericsson will supply 4G gear in 11 circles, including Rajasthan, Delhi, and Karnataka. Nokia will cover 9 circles such as Mumbai, Gujarat, and Kerala, while Samsung will handle Kolkata and Punjab.
Although, in the competitive race of 5G services, Airtel boasts 90 million 5G users. However, its 5G expansion is still not as widespread as 4G. According to the The Economic Times report, the telecom company plans to deepen its 4G coverage before embarking on broader 5G expansions.
Airtel currently has the highest Average Revenue Per User (ARPU) in the Indian telecom sector at Rs 211, surpassing rivals Reliance Jio Rs 182 and Vodafone Idea's Rs 146.
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