Vodafone Idea said a three-player telecom market will benefit Indian customers by providing more options. In an interview with Moneycontrol, the company’s Chief Technology Officer, Jagbir Singh, shared that the 4G expansion, under new agreements with Nokia, Ericsson, and Samsung, is set to begin in November, and the rollout of 5G commercial services will be done by March 2025 across all 17 priority circles.
He said the telco's top priority is to complete its 4G expansion in two years instead of the initially planned three, adding that the telco will be able to reach 90 percent of the Indian population with its 4G network by June 2025. The debt-laden company plans to launch 5G-based Fixed Wireless Access services once its 5G network becomes commercially available.
Edited excerpts:
How do you see Vodafone’s role in India’s telecom industry?
With a population of 1.4 billion, India deserves to have at least three telecom operators to offer consumers more choices. At Vodafone Idea, we're committed to ensuring customers have those options.
Although we are smaller than others, we are highly focused on delivering a quality network and exceptional customer experience, our key value proposition. We'll stay relevant by focusing on our customer base, providing a strong network, and expanding coverage as much as possible.
Wherever we operate, we will maintain high service and quality standards, helping reduce customer churn.
How will you prevent customer churn?
Price anybody can match and we are not financially strong to offer services at lower than others. What matters is good technology, good quality of service and increasing the population coverage. Coverage is an issue for customers, which we will solve.
Is rural expansion a key focus for Vodafone Idea?
Yes, rural expansion will be a key focus area for us. Our traffic growth in rural areas is slightly better than in urban regions, and as we expand coverage, we expect even better results. With a significant portion of the rural population still uncovered, we aim to increase 4G coverage by 15-16 percent, primarily focusing on rural areas. This expansion will be concentrated in 17 priority circles.
What is the plan for the 5G rollout? How much progress has Vodafone Idea made on network expansion?
We will cover cities one by one with our 5G. While there won’t be a massive 5G rollout, we are planning a reasonably good rollout based on customer demand. The rollout will begin by December, with equipment starting to arrive by Diwali or the first week of November. First, we’ll expand 4G, followed by 5G which will be available by March, 2025.
Ericsson and Nokia, our long-term partners, are already helping upgrade our network even before larger deals are finalized. We've been modernizing the network through software upgrades, wherever possible. For instance, we’ve added 50,000 sites on the 900 MHz spectrum using software to upgrade 2G sites to 4G. We're also refarming 3G spectrum in the 2100 MHz band for 4G services, with only 9,000 3G sites left. These efforts have improved 4G coverage and added 13 petabytes of capacity, which translates to a 15-18 percent increase in our network’s capacity.
Will Vodafone Idea launch FWA (Fixed Wireless Access) to monetize 5G?
Yes, but selectively, due to our limited 50 MHz 5G spectrum. We are also focusing on our wired broadband arm, YOU Broadband, to offer services in cities with fiber deployment.
When will you switch off 3G completely?
Of the remaining 9,000 3G sites, many are in areas like the Northeast, Assam, Orissa, and Jammu & Kashmir, where we may retain them for longer. However, we are gradually phasing out 3G as we swap Huawei equipment with Ericsson’s in Delhi, for instance. By the end of November, we will start execution.
Will you be more aggressive this year or deploy 4G and 5G based on demand in the circles?
Our top priority is to allocate all available resources to 4G as soon as possible. We aim to complete our three-year 4G plan in just two years, focusing on maximizing coverage, especially in rural areas where 5G is still a distant goal. Our target is to achieve 90 percent population coverage with 4G within the next year. The 5G rollout may extend beyond two years. We will take an aggressive approach to 4G expansion while simultaneously working to cover all major cities with 5G.
Why did you choose Samsung over Mavenir?
Samsung has proven itself with Jio’s 100 percent 4G network and is now used by Airtel for 5G. Samsung’s gear runs on virtual RAN, making it plug-and-play from day one. Additionally, the total cost of ownership (TCO) with Samsung is better than ORAN vendors. We have given new business to Samsung in Karnataka, Punjab, and Bihar.
Is ORAN not commercially viable?
Yes, due to the smaller scale and volume of ORAN deployment, the ecosystem is less mature, making it commercially expensive.
Will you repurpose Huawei and ZTE equipment for rural deployment?
In Delhi, we are replacing Huawei equipment with Ericsson devices. Similarly, in Punjab, Bihar, and Karnataka, equipment supplied by Chinese vendors is being swapped out for Samsung gear. The removed Chinese equipment will be repurposed to improve coverage in regions where Huawei technology is already in use.
Our decision to bring in Samsung is part of our strategy to phase out Chinese technology. With six or seven circles currently using equipment from Chinese vendors, this creates an opportunity to onboard a new supplier, as we can no longer utilize Chinese technology.
In areas where we plan to launch 5G, we will remove 4G equipment and redeploy it as needed. We will continue to replace any equipment that reaches the end of its life or support, ensuring we work with the appropriate vendors present in those regions.
We will not discard any equipment, even if it is from a Chinese vendor, as long as it has not yet reached its end of life.
Are you still using Chinese technology in core and trasport networks?
We assured the government that we have eliminated Chinese technology from our core network, the central hub where all databases are stored. No Chinese technology is involved in the core, addressing any security concerns. Security issues are primarily tied to the core, not the transport or radio networks. We've already replaced nearly all components with technology from American or European suppliers.
The transport network, which functions as a simple conduit with no intelligence or database, still includes some Chinese equipment. However, we've been consolidating its presence for the last four years, only sourcing Chinese parts for maintenance as needed, without expanding their role.
As for the radio network, we continue to replace any end-of-life or unsupported equipment.
Is 5G rollout slow due to fewer use cases? When will real monetization start?
5G has been commercially available worldwide for the past five to six years, but in India, it will take nearly two more years to become widespread. Globally, we haven't seen significant breakthroughs in terms of monetizing 5G. However, the entire ecosystem, including device manufacturers, network equipment providers, and software companies, is continuously working on developing use cases.
It typically takes at least two years for any new use case to mature. While Fixed Wireless Access (FWA) is a promising monetization opportunity that others have already launched commercially and are gaining subscribers, it will take more time for additional use cases to emerge and contribute to monetizing 5G.
How is your relationship with Nokia and Ericsson? Do they still have concerns over payment terms?
Ericsson and Nokia have been excellent partners for us, providing unwavering support even during challenging times. While it's true that no one will supply new equipment without payment, they have been instrumental in helping us manage our extensive network, including aspects like annual maintenance contracts and daily operational issues. Their contributions are a key reason why we grant them significant market share. We have no concerns regarding outstanding dues or financial matters.
Has Vodafone Idea provided network details regarding Chinese technology to the Department of Telecommunications (DoT)?
Yes, we’ve submitted all the required details to the DoT.
Can the government ask to replace Chinese technology entirely?
If the government funds the replacement, we’re ready to comply.
Are you deploying more fiber?
Yes, we plan to deploy 50,000 km of fiber over the next three years, either by ourselves or through leasing. We’re also increasing fiber Points of Presence (PoPs) and upgrading our DWDM network to support both 4G and 5G.
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