Reliance Industries-owned Infotel Broadband is likely to procure over $1 billion (about 5,500 crore) of network gear from Samsung Electronics to meet a sizeable chunk of its fourth generation equipment requirement.
Executives familiar with the matter told ET that talks are at an advanced stage for supply of LTE, or long-term evolution technology, network gear to launch the first wave of Infotel's 4G services in Mumbai and Delhi. The two companies have also discussed potential bundling of a 4G handset and devices supply deal within the contract, the executives said.
The entry of the South Korean conglomerate in India's telecom infrastructure market is expected to intensify competition in a sector where most operators have lowered capital expenditures, entailing fewer contracts for equipment providers and more pressure on their profit margins.
While Samsung said it would not comment on speculation, Infotel Broadband declined to comment on the specifics of the deal.
Read More : RIL's Infotel may buy $1 billion 4G network gear from Samsung Electronics - The Economic Times