Ericsson (ERIC.US) is rumored to have won a multi-billion dollar contract for 5G equipment from Indian operator Bharti Airtel

The Zhitong Finance App learned that two people familiar with the matter said that Swedish telecom equipment manufacturer Ericsson (ERIC.US) has obtained a new multi-billion dollar contract for 5G equipment sales from India's Bharti Airtel.

Last month, Ericsson was awarded part of a $3.6 billion contract to sell 5G devices to India's Vodafone Idea. It shared this contract with Nokia and Samsung.

These new contracts are expected to boost Ericsson's revenue next year. In the first half of this year, Ericsson's contracts in India were drastically reduced.

In the second quarter, the company's sales in Southeast Asia, Oceania, and India fell 44%. Ericsson will announce third-quarter results on Tuesday.

According to a source familiar with the matter, most of the deployment is likely to take place next year.

Demand in India's 5G market began to soar in 2023, when sales in the region increased more than fivefold as Airtel and Jio, a telecommunications subsidiary of Indian conglomerate Reliance Industries, began expanding 5G services.

This demand buffered the impact of Ericsson's revenue slowdown in major US markets. American telecom operators have been cutting back on spending.