Communications giant, Nokia (NOK, Financial) is in currently in talks with Bharti Airtel for a multi-billion dollar contract in supplying 5G telecom equipment, according to a Reuters report. The deal would entail Nokia's AirScale mobile radios, supporting upgrades to 5G-Advanced while offering energy savings.

• Warning! GuruFocus has detected 6 Warning Sign with NOK.

This comes at a time when Airtel, one of India's leading mobile operators, continues shelling out sizeable amounts to strengthen their network. Moreover, Sweden's Ericsson has already secured a multi-billion dollar 5G contract with Airtel, the report added. Additionally, India, the second-largest smartphone market globally, continues seeing telecom players such as Airtel, Jio, and Vodafone Idea (VOD) investing billions in 5G network upgrades.

Also its important that Nokia, based in Finland, is expected to release its Q3 earnings on Thursday. Additionally, Nokia stock has surged more than 34.4%, while beating the S&P 500's 15.3% gain over the same period. On top of that, the stock has jumped 5.6% in the past month as well, beating the S&P 500 yet again. Also, its important to note that Nokia nor Airtel declined to comment on the development.

This article first appeared on GuruFocus.