India’s Jio to sign $1.5 billion 5G equipment deal with Nokia

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The deal will support the operator’s ambition to achieve nationwide standalone 5G coverage by the end of the year 

Jio, India’s largest telecoms operator, is set to sign the contract as early as today at Nokia’s Headquarters in Helsinki, Finland, according to sources speaking to the Economic Times.  

The purchase will be financed by several global banks, including HSBC, Citigroup, and JP Morgan, whose combined loans will total around $4 billion. Finnish state-owned export credit agency Finnvera is set to issue guarantees to the lenders. Representatives from the banks are likely to be present at the signing, as well as Senior Executives from Reliance Group. 

In October last year, Jio signed 5G equipment contracts with both Nokia and Ericsson.  

At the time, financial details of the deals were not disclosed; however, media reports have since suggested that the deal with Ericsson was worth $2.1 billion. 

Now, this deal with Nokia will see the total 5G investment reach roughly $3.6 billion. 

Earlier this year, Jio’s president Mathew Oommen said the company aimed to become “the largest 5G SA (standalone) only network operator in the world in the second half of 2023”, with the company targeting nationwide coverage by the end of the year.  

In related news, earlier this week, Reliance Industries announced the launch of a budget 4G phone, (costing $12), aiming to convert the 250 million 2G users in India to 4G. The company says its goal is to pass the benefits of the internet-capable mobile technology to every Indian.