Reliance Jio Set to Sign $1.7 Billion 5G Equipment Deal with Nokia
- ByStartupStory | July 6, 2023
According to insider sources, Reliance Jio Infocomm is poised to ink a significant contract worth $1.7 billion with Nokia this week for the procurement of cutting-edge 5G network equipment. The deal, anticipated to be finalized at Nokia’s headquarters in Helsinki, Finland, is expected to be signed as early as Thursday.
Reuters reached out to both Jio and Nokia for comments, but no immediate responses were received.
Last year, Reliance Industries’ telecom arm selected Nokia as a key supplier as part of their preparations to expand wireless services across India. Jio had already invested $11 billion in acquiring airwaves during a 5G spectrum auction in August and had commenced 5G services in various cities. Additionally, Jio is collaborating with Google, a subsidiary of Alphabet Inc., to launch an affordable 5G smartphone.
Financial institutions like HSBC, JP Morgan, and Citigroup are reported to back Jio’s 5G-related purchases, with European export credit agency Finnvera issuing guarantees to lenders for offshore loans extended to Jio, as reported by the Economic Times.
In October of the previous year, the Swedish telecommunication company Ericsson had also announced a partnership with Jio to develop a standalone 5G network in India.
Earlier this week, Jio unveiled the launch of a 4G-featured phone in an attempt to cater to users who are yet to use smartphones. However, industry analysts believe this move is unlikely to disrupt the Indian telecom market.
Following the news, shares of Reliance witnessed an uptick of up to 2.3%, positioning it as one of the top gainers in the Nifty 50 blue-chip index.
Follow Startup Story
Related Posts
