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Vodafone Idea expands long-term partnership with Ericsson for 5G rollout

As part of the new agreement, Ericsson will upgrade Vi's existing 4G networks and introduce 5G in key areas, including Delhi, Kerala, Chhattisgarh, and Rajasthan

Just a day ahead of the hurriedly called Vodafone Idea (Vi) meeting meant to soothe the nerves of investors amid the company’s sliding stock price and a negative narrative around it, the telco announced a $3.6-billion (Rs 30,000 crore) deal with glob

Ericsson will upgrade Vi’s existing 4G networks and introduce 5G in key areas. | Representational

Prateek Shukla New Delhi

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Communication service provider Vodafone Idea (Vi) has expanded its long-term partnership with Ericsson by awarding new contracts for 4G and 5G services. This agreement will see Ericsson increase its network share and extend its presence across several Indian telecom regions.

As part of the new agreement, Ericsson will upgrade Vi’s existing 4G networks and introduce 5G in key areas, including Delhi, Kerala, Chhattisgarh, and Rajasthan. This move will considerably boost Ericsson’s market share in India and strengthen its collaboration with Vi to enhance digital infrastructure in the country.

Ericsson will deploy energy-efficient, lightweight equipment from its Ericsson Radio System portfolio, including mid-band Massive MIMO radios, to improve network performance. This technology will support Vi’s efforts to provide faster, more reliable connectivity and meet the increasing demand for data services.
 

Speaking on the development, Vi’s CEO Akshaya Moondra said, “Collaborating with Ericsson will enable Vi to modernise its 4G network and rapidly deploy a world-class 5G network. 5G deployment will allow us to manage growing data traffic and offer secure, reliable connectivity while enhancing the customer experience.”

Jagbir Singh, CTO of Vi said, “Ericsson’s energy-efficient 5G Radio Access Network products are designed to maximise network performance, benefiting both consumers and businesses across India.”

Supporting digital transformation and growth

Andres Vicente, Head of Ericsson’s Market Area Southeast Asia, Oceania and India, emphasised the importance of 5G in driving digital transformation stating, “5G is a critical enabler of digital transformation and economic growth. With Ericsson’s advanced technology, we aim to empower Vi to deliver fast, reliable, and scalable 5G services.”

Amarjeet Singh, head of Ericsson’s West India Customer Unit, expressed excitement about the partnership. “We are delighted to support Vi as it modernises its 4G network and launches 5G services for customers in India,” he said.

Ericsson continues to lead globally in 5G technology and has been recognised as an industry leader in the Frost Radar: Global 5G Network Infrastructure Market report. The company’s commitment to research and development ensures it remains at the forefront of network evolution, supporting Vi’s journey towards 5G.

Vi’s recent partnerships, market position

Last month, Vodafone Idea secured a Rs 13,500-crore deal with Nokia for 4G and 5G equipment across nine regions. As it continues to negotiate with Ericsson and Samsung for additional areas, the company is positioning itself to remain competitive against industry giants Reliance Jio and Bharti Airtel. In the coming months, Vi is likely to finalise an agreement with Samsung to further upgrade its network.

Vodafone Idea, which emerged from the 2018 merger of Vodafone Group’s Indian operations and Aditya Birla Group's Idea Cellular, has faced financial challenges and lost market share to its larger rivals.

Analysts from ICRA estimate that Vi and Bharti Airtel owe around Rs 1 trillion in past dues, including spectrum charges and licence fees. Despite these setbacks, the company’s latest moves signal its intent to strengthen its market position.

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First Published: Oct 07 2024 | 2:00 PM IST

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