Vodafone Idea to Finalize ₹16,500 Crore Equipment Deals with Ericsson and Samsung for 4G and 5G Expansion

Vodafone Idea (Vi) is about to sign significant deals worth approximately ₹16,500 crore to purchase network equipment for its 4G expansion and 5G rollout. This includes a ₹13,200 crore agreement with Sweden’s Ericsson and a ₹3,300 crore deal with South Korea’s Samsung.

These contracts come shortly after Vi secured a ₹13,500 crore deal with Finland’s Nokia last week, making these the second and third major contracts for radio network equipment.

Sources familiar with the negotiations said Ericsson will provide 4G and 5G equipment to Vi across 10 regions, while Samsung will supply gear in three key areas. Recently, there was intense competition between Ericsson and Samsung for these contracts, with Ericsson winning the supply contract for Delhi and Samsung securing the lucrative Karnataka region.

Under the new agreements, Ericsson will supply base stations for both 4G and 5G in Delhi, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Odisha, Maharashtra, Northeast India, Assam, Kerala, and Madhya Pradesh. Samsung will focus on Karnataka, Punjab, and Bihar. As of now, Vi, Ericsson, and Samsung have not commented on the deals.

Industry insiders suggest that Nokia may have a competitive advantage since around 53% of Vi’s customers are in the nine areas where Nokia will supply 4G and 5G equipment. In contrast, the 10 regions served by Ericsson have less than 40% of Vi’s customers. This could lead Vi to invest more in network capital expenditures in Nokia’s serviced markets, potentially increasing future business for Nokia.

These three vendor contracts are part of Vi’s broader plan to invest $3.6 billion (around ₹30,000 crore) in 4G and 5G equipment from Nokia, Ericsson, and Samsung over the next three years. This investment aims to enhance Vi’s 4G services and establish 5G networks in key cities across its 17 priority regions.

Once these deals are finalized, they will represent a crucial step for Vi as it seeks to strengthen its position in a competitive market against more financially robust rivals like Reliance Jio and Bharti Airtel, while also addressing customer losses.