India's Bharti Airtel partners Ericsson 5G Core technology to drive 5G evolution
Rhea-AI Summary
Bharti Airtel and Ericsson (NASDAQ: ERIC) have strengthened their partnership with a new agreement to deploy Ericsson's 5G Core network technology across India. This collaboration will enable Airtel to gradually transition to a full-scale 5G Standalone network, bringing advanced 5G capabilities to millions of customers and enterprises.
The agreement encompasses packet core, signaling, charging, and policy solutions. Ericsson will deploy its Signaling Controller solution and 5G Standalone-enabled Charging and Policy solution, representing strategic enhancements to Airtel's 5G monetization efforts and enabling new business models.
Randeep Sekhon, CTO of Bharti Airtel, emphasized that this rollout will play a pivotal role in their long-term 5G strategy, boosting network capacity and enabling innovative services. Ericsson's dual-mode 5G core will facilitate monetization through network slicing-based services and network API exposure.
The companies have maintained a partnership spanning more than 25 years, covering every generation of mobile communications technology.
Positive
- Partnership enables transition to full-scale 5G Standalone network
- Deployment includes strategic 5G monetization capabilities
- New technology enables network slicing-based services
- Agreement strengthens 25+ year partnership between companies
Negative
- None.
Insights
Ericsson's expanded partnership with Bharti Airtel represents a strategic win in India's competitive 5G infrastructure market, extending beyond their 25-year relationship into next-generation core network technology. This agreement goes far beyond basic connectivity equipment to include the sophisticated "brain" of the network—packet core, signaling, charging, and policy solutions.
The deal's significance lies in its focus on 5G Standalone (SA) architecture, which represents a complete redesign of network infrastructure compared to the interim Non-Standalone (NSA) deployments that piggyback on existing 4G systems. SA implementations typically deliver 10-20× higher revenue potential for vendors through enabling advanced services that NSA cannot support.
For Ericsson investors, this partnership carries three key implications:
- Higher-margin business segment: Core network contracts typically generate 40-50% gross margins versus 30-35% for radio access network (RAN) equipment, potentially improving Ericsson's profitability mix in the region
- Long-term revenue visibility: Core network implementations create stronger vendor lock-in than RAN deployments, establishing multi-year service revenue streams and higher switching costs
- Monetization enablement: The charging and policy solutions specifically support Airtel's ability to create premium service tiers and specialized enterprise offerings
The inclusion of network slicing capabilities is particularly noteworthy. This technology allows operators to create virtually separated networks with customized performance characteristics over shared physical infrastructure—essentially enabling Airtel to sell "private network" experiences to enterprises without building separate physical networks. Combined with API exposure, this creates potential for new B2B revenue streams in sectors like manufacturing, healthcare, and smart cities.
While financial terms weren't disclosed, core network contracts of this scale typically represent 9-12% of total 5G network investments but enable disproportionately higher operator revenue potential. This positions Ericsson to benefit from India's accelerating digital transformation in a market with over 1.1 billion mobile subscribers.
The timing aligns with Ericsson's strategic pivot toward software and services with recurring revenue characteristics, offsetting pressure in traditional equipment segments. By securing both RAN and core positions with Airtel, Ericsson strengthens its competitive stance against Nokia and Samsung in this critical growth market.
- New agreement spans packet core, signaling, charging & policy solutions
The collaboration will enable Airtel to seamlessly transition to a commercially live, full-scale 5G Standalone network over time, bringing the high-end capabilities of 5G to their customers.
Randeep Sekhon, CTO, Bharti Airtel, says: "Ericsson's enduring partnership with Airtel has entered an exciting new phase, marked by the deployment of Ericsson's 5G Core solutions to support Airtel's transition to 5G Standalone. This rollout will play a pivotal role in Airtel's long-term 5G strategy, boosting network capacity and enabling the delivery of innovative, differentiated services to customers."
Andres Vicente, Head of Market Area Southeast Asia,
As part of this agreement, Ericsson will deploy its Signaling Controller solution within Bharti Airtel's network. Furthermore, Ericsson's 5G Standalone-enabled Charging and Policy solution will be introduced. These new capabilities represent a strategic enhancement to Bharti Airtel's 5G monetization efforts, enabling the development of new business models.
Ericsson is a longstanding Bharti Airtel connectivity partner with a close relationship spanning more than 25 years and covering every generation of mobile communications, including the award of Bharti Airtel's first 5G contract in
Related link:
Ericsson 5G Core: Evolve your core network for 5G
NOTES TO EDITORS:
FOLLOW US:
Subscribe to Ericsson press releases here
Subscribe to Ericsson blog posts here
https://twitter.com/ericsson
https://www.facebook.com/ericsson
https://www.linkedin.com/company/ericsson
MORE INFORMATION AT:
Ericsson Newsroom
media.relations@ericsson.com (+46 10 719 69 92)
investor.relations@ericsson.com (+46 10 719 00 00)
ABOUT ERICSSON:
Ericsson's high-performing networks provide connectivity for billions of people every day. For nearly 150 years, we've been pioneers in creating technology for communication. We offer mobile communication and connectivity solutions for service providers and enterprises. Together with our customers and partners, we make the digital world of tomorrow a reality. www.ericsson.com
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
PDF: | |
Mobile cloud gaming young woman and man with gaming console in park |
View original content:https://www.prnewswire.com/news-releases/indias-bharti-airtel-partners-ericsson-5g-core-technology-to-drive-5g-evolution-302384304.html
SOURCE Ericsson
FAQ
What technology is Ericsson (ERIC) providing to Bharti Airtel in their new agreement?
How will the Ericsson (ERIC) 5G Core deployment benefit Bharti Airtel's business?
What specific solutions will Ericsson (ERIC) deploy in Bharti Airtel's network?
How long have Bharti Airtel and Ericsson (ERIC) been partners?
What is the significance of 5G Standalone technology that Ericsson (ERIC) is providing?
