Indian telecom companies are reaping the benefits of substantial discounts on equipment, as vendors set their sights on burgeoning markets.

What Happened: Vodafone Idea, Bharti Airtel and Reliance Jio are enjoying substantial discounts ranging between 30-40% for network equipment from Nokia and Ericsson, reported Economic Times. This strategy is part of a larger plan to target growth markets, with India being a primary focus.

The ₹30,000 crore deal, which reportedly went through tough negotiations, likely came as a huge relief for the vendors who are hard-pressed to find large business opportunities worldwide as most countries have already rolled out 5G services.

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According to research firm Analysys Mason, a macro 5G base transceiver station, which costs around $50,000 (42 lakh), is sold to Indian telcos for 40% cheaper.

Ericsson, Nokia and Samsung’s revenue declined in 2024 as network operators in North America and Europe slowed down their spending.

The weakness was limited to Western countries as revenues in India also declined by 44%-69% in four consecutive quarters after displaying strong sales in the July to September 2023 quarter.

Despite this, equipment manufacturers are still looking at India as a bright spot. After Vodafone Idea’s ₹30,000 crore deal, vendors are reportedly doing talks for a $1 billion-2 billion (₹8,408 crore to ₹16,816 crore) deal with Bharti Airtel to supply 4G and 5G equipment.

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