Vodafone Idea Signs network deal with Ericsson For rs 14000 Cr

CIOTechOutlook Team | Wednesday, 09 October 2024, 05:32 IST

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Vodafone Idea (Vi) signed a contract with Ericsson from Sweden for approximately 14,000 crore to purchase equipment for its 4G network expansion and 5G roll out over a three-year period. As per the contract, Ericsson will provide 4G and 5G base stations to Vi in 10 markets including Delhi, Rajasthan, Himachal Pradesh, J&K, Gujarat, Maharashtra, Northeast, Assam, Kerala, and Madhya Pradesh-Chhattisgarh under the new contract.

"Ericsson will upgrade 4G and deploy 5G across the Indian telecom circles it already powers for Vi. In addition, it will provide 4G and 5G services in the telecom circles of Delhi, Kerala, Chhattisgarh and Rajasthan, thereby increasing its footprint and market share with Vi substantially," the Swedish gear maker said in a statement Monday.

Vi's recent announcement includes a new deal with Ericsson as part of their plans to purchase $3.6 billion worth of 4G and 5G equipment from Nokia, Ericsson, and Samsung over the next three years. This move is aimed at strengthening their 4G services and launching 5G networks in important cities within their 17 priority circles. The action was a significant move by telecom firm to enhance its competitiveness in the market against larger competitors like Reliance Jio and Bharti Airtel, while also reducing customer churn.

Vi closed its initial 4G and 5G equipment purchase agreement with Nokia from Finland last month, and the recent deal with Ericsson is the second contract. Insiders reported that Ericsson and South Korea's Samsung have been engaged in a intense competition for the 4G/5G gear supply contract from Vi for Delhi, with the Swedish vendor ultimately winning. The particular agreement involving Vi and Samsung equipment has not been disclosed yet.

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