Ericsson sustains momentum in India, its second largest market
5G market share gains in India. Reported sales increased by 74% on-year. Ericsson flagged risks of being unable to supply equipment due to throttling of supplies of key ASIC and FPGA components, printed circuit boards, standard electronics or semiconductors (including foundry node availability) from very few suppliers, due to various reasons including natural disasters, conflicts or other potentially disruptive events.
It noted that the current tensions between the US and China, and the tense ‘cross strait relations’, had increased this risk. “Accordingly, there is a risk that the Company will be unable to obtain key supplies it needs to produce Ericsson’s products and provide Ericsson’s services on commercially reasonable terms, in time, or at all. This is particularly critical in connection with large projects like the current 5G rollout in India," it said.
The Swedish gear maker has bagged 5G equipment supply contracts from Reliance Jio and Bharti Airtel which between them have deployed over 275,000 base stations across the country since October last year. The number one and number two carriers aim to complete pan-India 5G coverage by 2024 and urban coverage by the year end. The telecom equipment maker is also in discussions India’s third largest carrier Vodafone Idea, Mint reported earlier this month, which will bring additional upside in the coming months when the contracts are finalised.
The deal will, however, be contingent on the carrier getting external funding. Ericsson is also increasing its local manufacturing capacities to meet with the local demand as well as target exports from India. The company aims to make India its global 5G hub.
. Read more on livemint.com
