Vodafone Idea is working on a big deal with Samsung to acquire network gear that will enable it to roll out 5G technology across six to seven telecom circles where it currently uses equipment from Chinese vendors Huawei and ZTE. Chief Technology Officer Jagbir Singh discussed these developments in an interview and presented ambitious plans for the company to strengthen its network capabilities.
In a first of its kind, Vi had recently agreed to conclude a deal worth Rs 30,000 crore with Samsung, Nokia, and Ericsson last month to strengthen its network infrastructure. This will be the first association of Vi with Samsung as it puts a lid on its strategic approach by entering a three-year CAPEX plan worth about $6.6 billion (Rs 55,000 crore).
“All 5G deployments will be handled by Samsung.”. Where 5G is being rolled out, Samsung’s 4G kit will also be deployed. That is why we are taking a third vendor into our business. We would look to do about 75,000 5G sites over the next three years,” Singh explained. He said that the focus has been on the replacement of Chinese equipment that has been in operation and has reached the end of their lives, while not letting the working equipment lie idle.
Singh adds that this new gear is more power-efficient, lighter, and feature-rich for both 4G and 5G technologies. Of course, the 5G will run on non-standalone architecture, which sounds rather like a sci-fi mobile version of a hoverboard.
Telecom service providers have been strictly told since June 2021 to allow only ‘trusted products’ from ‘trusted sources’ on their networks, a step aimed at countering the security risks associated with Chinese equipment. Significantly, even ZTE and Huawei have not so far obtained clearance from the National Cyber Security Coordinator for failing to meet the clearance requirements.
While the 4G abilities will remain the point of emphasis, the new equipment will be deployed across 45,000 4G sites over the next 18 to 24 months. In an update made for the April-June quarter of FY25, it was observed that 60 percent of Vi’s customers had started forming 4G users, up at 126.7 million against 210.1 million subscribers. Unfortunately, this is quite unfortunate because the company suffered a net loss of 2.5 million subscribers, a trend that has seen it losing ground to rivals like Jio and Airtel. With high-end customers drifting to these competitors, Vi faces the added headache of retaining 2G users who increasingly drift in favor of state-run telecom operator BSNL, which has to date not raised its tariffs even as the private competitors have done so.
A constant in this sea change, Vodafone Idea’s strategic alliances and technological revamps are a lifeline for the firm as it battles against the vagaries of India’s telecom landscape. Humor and optimism do a dash to hope that Vi’s network improvements will not only please those millions who are already enjoying its service but also beckon potential ones to take this entity seriously as a player with staying power in the ever-changing telecommunications terrain.
