Vodafone Idea (Vi) said it is expanding its footprint with the 5G rollout and, in connection with this, the company is in discussions with various network vendors. This announcement follows India's third-largest telco, which has been losing wireless subscribers month after month, responding to an exchange clarification sought about a recent news item that appeared on Moneycontrol on May 23, 2024, captioned "Ericsson India in talks with Vodafone Idea for a 5G deal: India MD."
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Ericsson Partnership
The article, published on Thursday, reported that Ericsson's India MD expressed optimism about the Indian market and mentioned that the Swedish telecom gear maker is in talks to secure 4G and 5G equipment orders from Vodafone Idea, following a successful follow-on offer.
"Vodafone Idea is our partner, and we are in discussions with them. We are hopeful that when they launch 5G, we will be supporting them in their rollouts," Nitin Bansal, Managing Director of Ericsson India, told Moneycontrol in an interview.
Vodafone Idea's Clarification
In this regard, Vodafone Idea clarified in an exchange filing on May 23 that Ericsson India is one of the company's network vendors. Furthermore, the company is expanding its footprint with the 5G rollout and, in connection with this, is in discussions with various network vendors, including Ericsson, for the supply of network equipment for the 5G rollout.
"In this regard, we would like to submit that Ericsson India is one of the network vendors of the Company. Further, the Company is expanding its footprint with the 5G rollout and, in connection with this, the Company is in discussions with various network vendors, including Ericsson, for the supply of network equipment for the 5G rollout," clarified Vodafone Idea in an exchange filing.
Also Read: Vodafone Idea to Focus on 4G Expansion, 5G Rollout: CEO
CEO's Customer Letter
Vodafone Idea's Chief Executive Officer (CEO), Akshaya Moondra, recently wrote a letter to its customers, as reported by TelecomTalk, stating that the company has achieved a significant milestone with the recently concluded Rs 18,000 crore Follow-on Public Offer (FPO), which was subscribed 7 times, reflecting the trust and confidence of investors in the Vi brand.
He further added that Vi's upcoming investments would focus on both the expansion of 4G services and the rollout of 5G services with the latest technology, ensuring that the telco continues to deliver the service quality that customers expect.
Future Investments
Additionally, during an earnings call held on May 17, 2024, regarding the 5G rollout, Akshaya Moondra said, "On the 5G front, we should be able to start rolling out 5G about six months from now. The 5G market, as you see, has been evolving. We will have to see how the market is evolving. The main focus is going to be on major cities or other areas with a large concentration of 5G devices. However, 5G investment will be somewhat iterative in terms of timing, and we will make investments as the market evolves."
Vodafone Idea mentioned that 5G would be the third category they will invest in over the next three years, with the first being the expansion of 4G coverage and the second being capacity growth, mostly in 4G where the company has already deployed 4G.
Also Read: Airtel Gained Wireless Subscribers Across All Circles in March 2024
Subscriber Data
Meanwhile, according to TRAI's Telecom Subscription Data as of March 31, 2024, Vodafone Idea lost 684,530 wireless subscribers, bringing its total subscriber base to 219,817,861 (219.8 million) with a VLR (Visitor Location Register) of 87.92 percent for March 2024.
