Vodafone Idea has recently expanded its collaborative efforts with Ericsson, enhancing plans to upgrade their 4G network and ushering in 5G services in significant Indian regions such as Delhi, Kerala, Chhattisgarh, and Rajasthan. This strategic move follows a substantial $3.6 billion network equipment contract involving Samsung and Nokia, alongside Ericsson signed just a month earlier.
The aim of this expanded partnership is to boost India’s digital infrastructure and cater to rising consumer demands. Vodafone Idea will leverage Ericsson’s mid-band Massive MIMO technology to enhance network performance while improving energy efficiency. This effort is crucial for the company’s intention to modernize its 4G network while setting up a world-class 5G network.
As stated by Vodafone Idea CEO Akshaya Moondra, “Collaborating with Ericsson will enable Vi to modernize its 4G network and rapidly deploy a world-class 5G network. 5G deployment will enable us to seamlessly manage the growing data traffic on the Vi network, provide secure and reliable connectivity while enhancing the customer experience from the network.”
The company faces substantial challenges. It remains notably behind competitors Bharti Airtel and Reliance Jio in terms of 4G advancement and large-scale 5G deployment. Consequently, Vodafone Idea has been losing market share in recent years. Complicating matters further, the company struggles with billions in adjusted gross revenue dues owed to the government. This financial burden impacts its ability to expand and modernize its infrastructure effectively.
Despite these financial hurdles, Vodafone Idea successfully raised $4.4 billion through equity financing in April and May of this year, signaling its commitment to using these resources wisely. The company’s recent $3.6 billion agreement with Nokia, Ericsson, and Samsung ensures the supply of necessary equipment over the next three years. This investment will extend Vodafone Idea’s 4G population coverage from 1.03 billion to 1.2 billion, alongside launching 5G in selected Indian markets.
These significant moves could propel Vodafone Idea’s efforts to regain competitive ground within the telecom sector. However, the company must navigate its financial obligations strategically to achieve a sustainable turnaround.
