Vi to sign 16,500-crore network gear deals with Ericsson, Samsung

CIOTechOutlook Team | Wednesday, 02 October 2024, 02:26 IST

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Vi is finalizing a deal worth Rs 13,200 crore with Ericsson from Sweden and another Rs 3,300 crore deal with Samsung from South Korea for their 4G network expansion and 5G rollouts. These will be the telecom JV's second and third significant contracts for radio network equipment, following a recent deal worth around Rs 13,500 crore with Nokia from Finland.

Several sources familiar with the agreement stated that Ericsson will provide 4G and 5G equipment to Vi in 10 regions, while Samsung will supply the same in three important areas.

They stated that Vi is near finalizing both agreements after a heated battle between Ericsson and Samsung, with Ericsson winning the 4G/5G gear supply contract for Delhi and Samsung securing the Karnataka circle that Ericsson was also competing for.

Ericsson is expected to provide 4G and 5G base stations to Vi in 10 regions including Delhi, Rajasthan, Himachal Pradesh, J&K, Odisha, Maharashtra, Northeast, Assam, Kerala and Madhya Pradesh, as per the new agreement. Samsung will be responsible for providing network equipment in Karnataka, Punjab, and Bihar.

Industry insiders suggest that Nokia has a competitive advantage against its Swedish rival, as nearly 53% of Vi's customers are located in the nine areas where Nokia will supply 4G/5G equipment. In comparison, Ericsson's 10 circles are estimated to have fewer than 40% of Vi's customers.

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