Vodafone Idea (Vi), the third-largest telecom operator in the country, is likely going to renew its deal with US tech major IBM to manage IT infrastructure. The deal is estimated to be worth around $1 billion or Rs 8,330 crore. It is a multi-year deal of five years. Vi already has a similar deal with IBM which is scheduled to end on April 2024. An ET report confirms that Vi has renegotiated its deal with IBM for the next five years.
IBM is likely going to manage and operate Vi's IT infrastructure. Along with this, IBM is likely going to offer other tech solutions to Vi for cloud computing and automation of data centers using AI (artificial intelligence), the report added.
Read More - Vodafone Idea Data Vouchers with OTT Benefits
The move to renegotiate a deal with IBM is poised to unlock a lot of value for Vi as it will not only enhance its IT infra, but also bring cost efficiencies into play, said the report.
Vi is looking to raise Rs 20,000 crore in equity, and another Rs 25,000 crore via debt. The telco's shareholders have approved the fundraising plans and the telco is hopeful to raise funds this time. The partnership with IBM is crucial for Vi, especially as it looks to launch 5G in the future. Vodafone Idea has not pushed money on 5G as the return on investments are negligible. However, the company has already demonstrated what its 5G networks can do at multiple events including the Mobile World Congress (MWC) 2022 and 2023.
Read More - Vodafone Idea Launches Cloud Play for Mobile Cloud Gaming
One of the highlights for Vi from MWC 2023 was the showcasing of Vi AirFiber, the telco's 5G FWA (fixed-wireless access) solution. Thus, IBM will help Vi to stay on track with its network expansion plans by handling the IT infrastructure load.
