Airtel, Nokia Sign Multi-Billion-Dollar Deal To Expand 5G Network In India

Nokia on Wednesday has secured a multi-year, multi-billion contract extension from Indian telecom major Bharti Airtel Ltd. to deploy 4G and 5G network equipment across key cities and states in India, according to a joint statement by both the companies.

Under the agreement, Nokia will deploy equipment from its AirScale portfolio, including base stations, baseband units, the companies said in a statement, adding that the deployment aims to enhance Airtel's 5G capacity and coverage. Nokia will also modernise Airtel's existing 4G network with multiband radios and baseband equipment that are compatible with 5G.

The companies, however, did not disclose the exact amount transacted in the deal.

“This strategic partnership with Nokia will future proof our network infrastructure and provide customers with unparalleled user experience,” Airtel’s Vice Chairman and Managing Director Gopal Vittal said in a statement.

The deal extends a long-standing collaboration between Airtel and Nokia, which spans over two decades, the statement said. Nokia has previously supplied equipment for Airtel's 2G, 3G, 4G, and 5G networks.

Shares of Airtel extended declines for the second consecutive trading session. The stock closed 0.8% lower at Rs 1,525.20 apiece on Tuesday. That compared with 0.3% gains in the country's benchmark NSE Nifty 50. Stocks markets were shut on Wednesday due to the assembly elections in Maharashtra. (Catch all the live updates on elections here.)

Out of the 35 analysts tracked by Bloomberg, 29 have a "buy" rating on the stock, while four have a "hold" rating and two of them have a "sell" rating. The analysts consensus 12-month price target tracked by Bloomberg was Rs 1,803, implying a potential return of 59.6% from the last closing price.

Shares of the Sunil-Mittal-led company rallied 48% so far this year and 59% in the past 12 months.