Nokia will emerge as the largest 4G and 5G supplier to Vodafone Idea after securing a three-year deal, which the telecom operator announced on September 22, the company said.
Under the deal, the Finnish equipment maker has not only retained existing circles where it provided 4G equipment but will now replace Huawei and ZTE in Chennai and Andhra Pradesh, respectively, a company source told Moneycontrol on the condition of anonymity.
With the deal, Nokia will become Vodafone Idea's largest supplier, covering regions that generate over 50 percent of the operator’s revenue. As part of the agreement, Nokia will expand its market share by replacing Chinese vendors in Chennai and Andhra Pradesh. The deal also includes the modernization and expansion of VIL's 4G network, where Nokia is already a significant supplier.
Moneycontrol on May 7 reported that Ericsson and Nokia were seeking to secure 4G and 5G business from Vodafone Idea, not only in circles where they provide services but also where 4G technology has been deployed by Chinese companies Huawei and ZTE, executives and analysts said.
In 2019, Nokia won nine circles from Vodafone Idea, while Ericsson bagged eight. Chinese gear vendors Huawei and ZTE bagged seven and five circles, respectively. All five circles of ZTE were shared with another vendor.
Vodafone Idea on September 22 concluded a mega $3.6 billion deal with Nokia, Ericsson, and Samsung to supply network equipment over three years, marking the first step towards the rollout of the company’s three-year capex plan of $6.6 billion, which is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and expanding capacity in line with data growth.
This deployment will enhance connectivity for over 200 million VIL customers using Nokia’s 5G AirScale portfolio, powered by energy-efficient ReefShark System-on-Chip technology. It will involve base stations, baseband units, and next-gen Habrok Massive MIMO radios, designed for easy deployment and to deliver superior 5G capacity and coverage, Nokia said.
Additionally, Nokia will upgrade VIL’s existing 4G network with multiband radios and baseband equipment, which are also 5G-ready. VIL will also benefit from Nokia’s MantaRay SON platform, an industry-leading network optimization and automation solution that uses self-configuring modules to enhance network performance and efficiency. This platform can be customized to optimize specific software applications and address unique operational needs.
Tommi Uitto, Nokia's President of Mobile Networks, said, “Nokia is proud to be Vodafone Idea’s partner in the next stage of its network evolution. This is a continuation of our long-term partnership that has lasted for over three decades and highlights their trust in our technology portfolio.”
Nokia, a long-term partner of VIL, has previously supported the deployment of its 2G, 3G, and 4G networks, and now extends its support to 5G.
“We are committed to providing a best-in-class 4G and 5G experience to our customers and this new deal with Nokia, who has been our partner since the beginning, will help us to deliver that. 5G will bring seamless high-speed connectivity and increased capacity supporting citizens and enterprises alike. This will also enable unprecedented levels of innovation and efficiency across various sectors, empowering organizations to thrive in today's fast-paced digital landscape," Akshaya Moondra, CEO of Vodafone Idea Limited, said.
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