Ericsson backs India as a telecom manufacturing hub, says Vodafone Idea making serious comeback efforts

Andres Vicente, Head of Southeast Asia, Oceania and India

As global supply chains shift away from China, India is emerging as a credible alternative for innovation and manufacturing in telecom and electronics, Swedish telecom gear maker Ericsson said. The company is responding to this trend by ramping up local production, deepening component sourcing, and transforming its India unit into a research hub for 5G, cloud, and artificial intelligence.

A senior executive said Ericsson plans to fully localise the production of passive antennas by June 2025, laying the foundation for increased value addition and exports.

“We are betting strongly on the future growth of this market. India is positioned like no other market to be the real alternative to the current Chinese ecosystem for innovation. It’s well-known what companies like Apple are planning in this space. We are also aiming in the same direction. We are building incremental capabilities in India, and this is possible because the market is growing,” Andres Vicente, Head of Southeast Asia, Oceania and India, told Moneycontrol.

Ericsson is intensifying its India manufacturing efforts. By mid-2025, it aims to localise production of all passive antennas and increase sourcing of telecom components to boost local value addition and enable exports. The India unit will also be a larger research centre for next-generation technologies, including AI and 5G.

“India is becoming very attractive for building a complete manufacturing ecosystem. We are increasing our manufacturing capabilities by adding more elements. 100% of what we do [including base stations] in India will be produced here, and we also have significant plans to increase the value addition of manufacturing,” Vicente said.

Ericsson is also expanding the capacity of its manufacturing facilities in the country. Currently, Jabil produces its 4G and 5G equipment, while VVDN manufactures antennas.

The VVDN partnership marks India’s inclusion in Ericsson’s global manufacturing footprint, alongside Mexico, Romania, and China. While local demand for passive antennas is robust, the company plans to export them at “competitive price points from India.”

“We will do it because it makes sense for us. India is very well positioned to become a relevant hub for manufacturing. It is not easy to basically build an alternative ecosystem, but we are on the right track and this is the journey that we're trying to drive together with some other parties,” he added.

When asked if Ericsson plans to export 4G and 5G equipment from the Jabil factory in Pune, Vicente said, “It is part of the journey… you need to enhance the value added before you export from here.”

On the competitive Indian telecom landscape, Vicente noted that Vodafone Idea is making serious efforts to catch up and is being supported by Ericsson in its market plans. He said the operator’s upcoming 5G launch across cities would drive further competition.

“We have a positive view on the future of India and our business. India contributes 7% to our annual revenues, which is already impressive. This market is extremely relevant for us,” he said.

Ericsson recently partnered with Vodafone Idea to launch 5G services in the Delhi-NCR region, replacing legacy 4G equipment supplied by China’s Huawei.

Given India's scale, Vicente said the market demands strong telecom operators and that Vodafone Idea could emerge as a more competitive third player.

“India is a market with almost 1.5 billion people — the most populated market in the world, hungry for innovation and building a strong ecosystem. It’s a market that requires strong operators. How many? That is a question for the government. But most countries with a similar size to India play with at least three operators. This is the case in the United States and China. I believe there is a scenario where Vodafone Idea can become stronger,” he added.

Vicente also urged Indian policymakers to focus on domestically developed and regulated terrestrial telecom networks to preserve technological sovereignty and boost economic benefits such as local investment and job creation.

“If I were the government, I would focus on technologies developed and regulated within the country because there’s a big difference between global and local reach. Preserving technology sovereignty and autonomy through terrestrial networks is very important,” he said.

While telcos should expand coverage in commercially viable areas, he emphasized that they must work closely with the government in unprofitable regions to align with national goals of greater connectivity.

Acknowledging the role of satellite communication in disaster recovery and remote coverage, Vicente underscored the superiority of 5G in terms of speed, latency, affordability, and scalability.

“It is also true that satellite-based communication can add value in case of a natural disaster, etc., by complementing first responders. But it is also in the favour of India to promote terrestrial coverage because, in the end, this is a technology that is fully in control of the national regulator and is also a technology that is created by investing in the country, creating jobs, [and] wealth coming out of the investment,” he said.

Ericsson employs 22,500 people in India, with 2,000 engaged in research and development.

“We are also betting on the market. The R&D work we are doing in India is crucial for our future as it’s focused on 6G, artificial intelligence, and network APIs. India is positioned like no other market to be the real alternative to the current Chinese ecosystem for innovation,” Vicente said.