Ericsson is doubling down on its rural 5G push in India, calling it a core part of its strategy as global telecom investments begin to cool. The company sees India not just as a key market but as a cornerstone of its future growth.

India: A Strategic Growth Market

Reaffirming its long-term commitment, the telecom equipment giant highlighted India’s pivotal role in its global business. Ericsson is channelling investments into infrastructure and innovation, with a focus on closing the digital gap by expanding connectivity beyond major cities.

Andres Vicente, Head of Southeast Asia, Oceania, and India at Ericsson, described India as “a very important market” and emphasised that strengthening rural 5G networks is a top priority. The company sees growing potential in new digital applications emerging outside urban centres, from precision farming to digital healthcare.

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The Next Big Push: Rural 5G Coverage

Reliance Jio and Bharti Airtel—India’s leading telecom operators—have completed large-scale 5G rollouts, supported by Ericsson as a key technology partner. While this initial phase gave Ericsson a strong revenue boost, the company is now facing a slowdown as network expansion stabilises.

“There’s still a lot of work to be done, especially in rural coverage,” Vicente said. He noted that comprehensive 5G access is essential for unlocking the next wave of digital growth. Extending high-speed networks to remote areas, he added, will be vital to advancing India’s digital inclusion agenda.

Revenue Trends Reflect Market Shift

Despite 99.9% district-level 5G coverage, only about 80% of India’s population currently has access to the network, revealing the scope for further expansion. India now contributes roughly 7% of Ericsson’s global revenue, underscoring its strategic weight in the company’s portfolio.

However, earnings have softened as capital spending by telecom operators declines. In the second quarter of 2025 (April–June), Ericsson’s India sales fell to $230 million — a 32.5% drop year-on-year — following a similar 28% fall in the first quarter. The decline highlights the industry’s transition from rapid deployment to more gradual network optimisation.

Manufacturing Momentum in India

Beyond network infrastructure, Ericsson is strengthening its manufacturing base in India. The company recently began producing passive antennas in collaboration with VVDN Technologies, marking a significant expansion of its local production capabilities.

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This move elevates India to one of just four global hubs — alongside China, Romania, and Mexico — manufacturing and exporting Ericsson’s high-end antenna equipment, a testament to the country’s growing role in the company’s global supply chain.

A Long-Term Vision

Ericsson’s renewed focus on rural 5G coverage is both a strategic move and a business necessity. As India advances toward a fully connected digital economy, reaching the last mile in connectivity will define the next chapter of the country’s telecom growth — and Ericsson aims to be at the heart of that transformation.