Finland-based telecom gear maker Nokia on Wednesday said it has won a “multi-year, multi-billion” extension deal by Bharti Airtel to deploy 4G and 5G equipment across key Indian cities and states.

As per the contract, Nokia will deploy equipment such as base stations, and baseband units.

Nokia will also help Airtel modernise its existing 4G network with multiband radios and baseband equipment, which can support 5G.

Airtel will also use Nokia’s MantaRay Network Management for network monitoring and management that uses artificial intelligence (AI)-based tools covering digital deployment, optimisation, and technical support.

Nokia has collaborated with Airtel for over two decades, providing 2G, 3G, 4G, and 5G network equipment.

India has become a crucial market for telecom gear makers like Nokia and Ericsson amid a weakening of demand from the US, as New Delhi looks to cut Chinese equipment from its telecom infrastructure.

“This strategic partnership with Nokia will future-proof our network infrastructure and provide customers with unparalleled user experience along with a network that will be eco-friendly to minimise environmental impact,” said Gopal Vittal, vice-chairman and managing director, Bharti Airtel.

In September, Vodafone Idea (Vi) concluded a $3.6 billion deal with Nokia, Ericsson, and Samsung for supply of network equipment over a period of three years.

The deal marked the first step towards the rollout of the company’s three year capex plan of $6.6 billion.

Airtel’s and Vi’s network gear deals have come at a crucial juncture.

Earlier this year, the Supreme Court rejected curative petitions filed by companies including Vi and Bharti Airtel where the telcos sought to rectify what they called ‘arithmetical errors’ in the Department of Telecommunications’ (DoT) calculation of adjusted gross revenue (AGR) dues.

Vi had outstanding dues of more than Rs 2 lakh crore to the government as of March this year.

This includes deferred spectrum payment obligations of Rs 1,33,110 crore and the AGR liability of Rs 70,320 crore.

The company had expected the court to give it relief on payment of the last amount of Rs 70,320 crore.