According to a report by Money Control, Ericsson expects operating conditions in India to improve in the coming year after the government’s adjusted gross revenue (AGR) relief to Vodafone Idea, a move the company says strengthens the country’s three-player telecom market and supports long-term industry stability.
Speaking in an interview, Ericsson CEO Börje Ekholm described the development as a positive structural shift that reinforces competition and sets the stage for renewed investments and innovation in the sector. The Swedish telecom gear maker, a key supplier to Indian operators, sees the market remaining strategically important even as the global telecom equipment cycle moves beyond the peak of its record 5G rollout phase.
The government’s decision to freeze Vodafone Idea’s AGR dues at Rs 87,695 crore and allow staggered repayment between FY32 and FY41 is viewed as critical in preventing further stress in the telecom ecosystem. According to Ekholm, a stable three-player market structure is healthy and provides a strong base for technological advancement on top of India’s rapidly expanding mobile network infrastructure.
India accounted for about 5 per cent of Ericsson’s global revenue in the October-December quarter. While this share has fluctuated in recent years, the company indicated optimism about future business prospects tied to expected capital expenditure by telecom operators once market conditions strengthen.
Ekholm noted that while the pace of network investments may moderate in the short term following the rapid 5G expansion completed in 2023, the long-term outlook remains positive. India witnessed one of the fastest 5G deployments globally, resulting in significant capacity creation. Usage growth is now catching up, which could eventually drive fresh rounds of network investments.
Despite ongoing global restructuring and workforce reductions, with Ericsson cutting around 5,000 jobs over the past year, the CEO downplayed any major impact on India operations. He described India as a “very material and strategic asset” for the company, highlighting the country’s skilled workforce and its role in supporting global capabilities.
Ericsson operates major research and development centres in Chennai, Bengaluru and Gurugram, covering areas such as packet core, transport networks, OSS/BSS, cloud and artificial intelligence. The company employs thousands of professionals in India and has recently expanded into ASIC development and advanced RAN software research, deepening its presence in the semiconductor and 5G technology ecosystem.
On the manufacturing front, Ericsson last year began production of passive antennas in partnership with VVDN Technologies, positioning India as one of its global export hubs for such equipment. Future investments in R&D and manufacturing, the company indicated, will be linked to business volumes, but its commitment to India’s digital ecosystem remains firm.
Artificial intelligence is emerging as a key theme in telecom networks worldwide, particularly in radio access networks and data centre solutions. Ericsson said it continues to integrate AI across network operations, including energy efficiency and spectrum optimisation, while following a strategy that separates hardware and software layers to ensure flexibility for operators.
As the telecom sector transitions into a post-5G rollout phase, Ericsson’s outlook suggests India will remain a front-runner market, both in scale and in technology adoption, with the AGR relief seen as a stabilising factor that could improve the investment climate over time.
