As Indian telecom giants tighten their purse strings, Ericsson’s sales tumble, raising questions about network investments, regional strategy, and the pace of 5G expansion.
Swedish telecom giant Ericsson has reported a steep 32.5% drop in net sales from its India operations during the second quarter of 2025. The company posted India revenues of US$230 million (approximately ₹19.74 billion), down from US$341 million during the same period last year.
According to a report by The Economic Times, this signals a cautious investment climate among local telecom operators.
The company attributed the decline to Indian operators holding back on new network investments. Sales in India were weak, as operators held back on new network investments, as per Ericsson’s Q2 earnings report.
Despite the slump, India remains one of Ericsson’s key markets, contributing 4% to the company’s global sales during the quarter. This marks a decrease from 6% a year ago, highlighting the changing dynamics in regional investment patterns.
Globally, Ericsson saw its total net sales fall 6% year-on-year to SEK 56.1 billion (almost US$5.9 billion). The South East Asia, Oceania and India segment recorded an even sharper year-on-year decline of 28%, with total sales dropping to SEK 5.5 billion (US$578 million).
The company noted that the fall in network sales was primarily due to reduced investment activity in India and heightened competition in Southeast Asia. Its Cloud Software and Services segment also reported weaker performance, impacted by the timing of project deliveries.
However, Ericsson managed to secure new business in India during the quarter. It signed a multi-year managed services contract with Bharti Airtel to operate the telecom major’s network operations centre.
Read more: Ericsson To Expand Chip R&D In Bengaluru, Add 150 Engineers
