Bharti Airtel and Reliance Jio are expected to purchase an additional $2 billion in new 5G network equipment to enhance their next-generation mobile broadband coverage for a rapidly growing user base as more smartphones supporting the latest technology are being shipped.

 

Sunil Mittal's Airtel has issued a new request for proposal (RFP) to begin its second round of 5G equipment purchases, while Mukesh Ambani's Jio is also in talks with international suppliers, according to sources.

 

“Airtel’s RFP is under evaluation at the 5G vendors’ end. Ericsson and Nokia will likely be the principal OEMs (original equipment makers) handling bulk of Airtel and Jio’s fresh 5G base station (BTS) needs with a small chunk of the expansion deals likely going to Samsung,” one of the sources told ET.

 

Multiple individuals familiar with the discussions expect Jio and Airtel to purchase approximately $1 billion worth of 5G network equipment, with a focus on radio base stations.

 

“We have already indicated in the past that our capex outlay will unwind from last year levels (but) as a part of normal business operations, we continue to engage with our business partners,” an Airtel spokesperson said in response to ET’s queries.

 

After investing heavily in purchasing 5G equipment in 2022, and deploying 5G networks starting in October of that year, the two telecom companies have now decreased their 5G growth due to a lack of ways to make money from it.