MC EXCLUSIVE Vodafone Idea turns to Indian vendors like Tejas, HFCL, HCL to cut costs, speed up 4G-5G rollout

The telecom operator is currently deploying 4G and 5G equipment across 17 priority circles as part of a broader plan to reduce customer churn and enhance network experience.

Vodafone Idea (Vi) is increasingly leaning on Indian network equipment vendors such as Tejas Networks, HFCL, and HCLTech to reduce costs and speed up rollouts, and localise its 4G and 5G infrastructure, marking a strategic shift toward homegrown telecom technology as it pushes for a turnaround.

Sources told Moneycontrol that the telecom operator has started trialling 4G and 5G wireless equipment from Tejas Networks in one of its circles and could look at commercial orders depending on performance.

“Vodafone Idea wants to work with more Indian vendors for our requirements wherever possible to cut costs and to have a faster time to market. We are currently trialling Tejas 4G and 5G equipment in one of the circles. We are seeing if it is a mature tech as per our requirements. If they are good, we will be happy to deploy,” said a source familiar with the matter.

The company has already been deploying packet and optical transmission gear and routers from Tejas to strengthen its backhaul network and is now significantly increasing order volumes, the person added.

Beyond Tejas, Vi is also expanding its partnerships with other domestic technology players. HCLTech has been selected to provide Self-Optimising Network (SON) technology, while HFCL has also received a deal to supply IP/MPLS routers for Vi’s 5G network -- joining multinational suppliers that already serve the telco in several circles.

“Not just Tejas, Vi is also exploring commercial tie-ups with other vendors. For instance, HCL has been selected for its SoN technology while HFCL is supplying IP/MPLS routers for the 5G network,” another person aware of developments said.

Tejas Networks’ Chief Strategy and Business Officer, Sanjay Malik, confirmed to Moneycontrol that the company is now engaging with private telecom operators in India, though he did not name Vodafone Idea.

While BSNL remains Tejas’ anchor customer—with over 97,000 4G sites currently under deployment—Malik said the company expects 2026 to be a turning point, as private telcos begin adopting its network solutions. “Private operators are increasingly confident about the 4G-5G stack that Tejas and TCS have built. They have tested it and are satisfied with the results. Engagements have begun, and we expect them to translate into commercial opportunities soon,” Malik said.

The telecom operator is currently deploying 4G and 5G equipment across 17 priority circles as part of a broader plan to reduce customer churn and enhance network experience.

For the expansion, the telco had in 2024 signed a $3.6 billion deal with mobile and network manufacturers Nokia, Ericsson and Samsung for supply of equipment over a period of three years.

Vi’s full-year capital expenditure (capex) guidance is pegged at Rs 7,500–8,000 crore, with around Rs 5,000 crore already utilised in the first half of FY26.

“For the first half, the guidance was about Rs 5,000 crore, and the telco is broadly on track for that. Another couple of thousand crore will go into H2,” the second source added.

In a statement to Moneycontrol, Vodafone Idea spokesperson said, "maintaining high standards of quality, performance, and service is most important to us. We evaluate and work with a diverse set of vendors including global and Indian players who meet these benchmarks."

The telco is simultaneously exploring various funding options — including debt, non-banking institutions, and strategic investors — to sustain its turnaround plan. The company is in advanced talks to raise about Rs 5,000 crore in debt financing, as reported by Moneycontrol on August 26.

“While there is a need for immediate funding, the telco’s capex plan is unlikely to be impacted for the ongoing fiscal. We’re funded till the end of this fiscal year, March 2026,” the second source said.

The person added that network expansion briefly slowed after the telco completed 16,500 sites, but rollout has since resumed. “It is back on track and plans to roll out another 8,000–10,000 sites over the next one to two quarters,” the person said.

In a Diwali message to customers, Vodafone Idea CEO Abhijit Kishore called the launch of Vi 5G a “new chapter of growth and transformation,” promising continued innovation and enhanced customer experience.

“This is an especially significant time for us at Vi, as it marks a new chapter of growth and transformation. With the launch of Vi 5G this year and continued expansion of 5G/4G networks across India, we are stronger and faster, connecting millions of customers every day,” Kishore said.

Elevated to the CEO role in August, Kishore highlighted that Vi’s AI-led networks can optimise performance in real time and currently provide coverage to 1.2 billion people.

The executive added that 5G rollout across 17 priority circles and 29 cities is improving customer experience, boosting average revenue per user (ARPU), and rebuilding brand trust.

“Wherever 5G is deployed, traffic is going up on the 5G network. The focus continues to be on coverage, even though we are also going deeper in terms of capacity in areas where there is traffic growth. The focus is to go wider. For rural areas in these priority circles, the focus is to expand 4G, while urban will get 5G,” the first source said.