New Delhi, February 15: Vodafone India has awarded Swedish Ericson with a 4G deployment contract worth $300 millions. This contract aims to construct and expand the 4G services in India. Today in these competitive markets after Reliance Jio hit the telecom industry services like 4G have become common.Vodafone India and Idea Cellular have common network equipment and managed services vendors. The proposed merger could lead to realignments of existing contracts with their respective partners, industry analysts said. Both the telecoms may have to renegotiate some vendor contracts to optimize network and bring in operational efficiency on a circle-to-circle basis, they said.
This 4G deployment services contract is meant for Uttar Pradesh, West Rajasthan, Odisha, North East and Assam telecom zones. “The deployment of 4G LTE network is expected to be completed by the third quarter of 2017. Ericsson, under this contract, is deploying its full radio system portfolio that offers 50% improved energy efficiency,” said one of the persons. Vodafone also awarded a multi-year managed services contract, worth €200 million which is about Rs 1,420 crore to Nokia, covering several telecom circles.
A senior executive from the providers said that the telecom carriers will have to choose between vendors running parallel service and supply contracts, so as to keep one network. They may even redistribute geographies between suppliers. Vodafone company, started its services in 2007 and has operations across the country, serves more than 200 million customers including over 106 million in rural areas.