Indian consumers are steadily accepting 4G services in response to the increasing network coverage for various telecom operators. While Airtel is transitioning towards VoLTE technology, Vodafone has now been granted a 4G deployment contract worth $300 million (approx Rs 2,040 crores) to Swedish hardware maker Ericsson.
The contract focuses on the deployment of 4G services in UP West, Rajasthan, Odisha, North East and Assam telecom zones.
Vodafone India is currently involved in potential merger talks with Idea Cellular. The merger would lead to the formation of a separate and combined entity. The incorporated entity would become India’s largest telecom company with a market share of roughly 43 percent — 23% of Vodafone & 19% of Idea. Presently, Airtel dominates the market with a market share of 33%.
Though Vodafone is engaged in such significant merger talks, the company has poured this massive amount towards the expansion of 4G services. The contract will certainly have an impact on Idea’s expansion plans as well. It may lead to the merger anytime soon considering the uprise of Vodafone’s 4G services in remote areas of the country. It is possible Idea Cellular may also confer a certain amount to further build the network infrastructure.
The Swedish giant, Ericsson will help Vodafone improve energy efficiency by 50% through its own radio equipment. Commenting on the contract, an executive familiar with the matter said,
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.
Currently, Vodafone offers 4G services across 17 circles under its range and is rapidly improving it others. Similar contracts were previously bestowed by Vodafone to various network component makers for deployment of its 4G services. These include expansion deal worth $ 450-500 million (about Rs 3,650 crore) with Nokia covering 10 circles and Huawei in Karnataka, Kerala and Delhi circles. The company is now planning to redistribute geographies between suppliers for expansion of its circles.
