Bharti Airtel, India’s second-largest telecom operator, is set to invest $1 billion in 4G network gear from Ericsson, Nokia, and Samsung over the next three years, according to a report by The Economic Times.

The move aims to bolster Airtel’s 4G coverage and transition its feature phone users to smartphones, driving an increase in average revenue per user (ARPU). The company, led by billionaire Sunil Mittal, is focusing on expanding its 4G network while engaging with global suppliers for 5G infrastructure.

Ericsson, Nokia, and Samsung will supply approximately 50 percent, 45 percent, and 5 percent of the equipment, respectively. This includes nearly 300,000 additional 4G base stations across India. Ericsson is expected to cover 11 telecom circles, including Rajasthan, Delhi, and Karnataka, while Nokia will manage nine circles, including Mumbai, Gujarat, and Kerala. Samsung will handle two circles, Kolkata and Punjab.

Airtel, with a market capitalization of ₹9.46 trillion, will pay the three vendors through letters of credit, backed by banks as guarantees for future payments. The company’s stock has surged over 80 percent in the past year, significantly outpacing the 23 percent rise in the benchmark Sensex.

Airtel’s latest network expansion aligns with its strategy to improve mobile broadband in five key circles, Gujarat, Maharashtra, Madhya Pradesh, Kerala, and West Bengal. The telecom giant also plans to boost 4G coverage in non-census towns and villages, aiming to convert its remaining 95 million 2G users to 4G.

This significant investment is expected to solidify Airtel’s position in India’s highly competitive telecom market, improving connectivity and user experience across the country.