26 March 2024 – Vodafone Idea’s anticipated fundraising could pave the way for lucrative opportunities for multinational telecom equipment suppliers such as Nokia and Ericsson, who have experienced a decline in sales in India. The infusion of capital is expected to facilitate the telco’s network expansion plans, potentially leading to new contracts for equipment vendors.
The fundraising initiatives by Vodafone Idea are poised to unlock fresh revenue streams for global telecom gear manufacturers like Nokia and Ericsson. Analysts foresee a weakened 2024 for these vendors in the absence of substantial business from major Indian telecom operators like Airtel and Reliance Jio. Vodafone Idea, currently grappling with a cash crunch, aims to bolster its 4G infrastructure and commence 5G deployments post-funding.
Ashwinder Sethi, principal at Analysys Mason, highlights the opportunity for vendors like Nokia, Ericsson, and Samsung to secure contracts as Vodafone Idea prioritizes network enhancement to enhance customer experience and reduce churn. The telco, lagging behind its competitors, is expected to focus on expanding its 4G footprint initially.
The recent decline in sales experienced by Nokia and Ericsson underscores the significance of Vodafone Idea’s fundraising for these vendors. With the telco’s plans to raise substantial capital, Ericsson’s Nunzio Mirtillo views this as a positive development for the industry, emphasizing the importance of a robust telecom infrastructure in India.
Additionally, the potential adoption of OpenRAN technology by Vodafone Idea presents an opportunity for US-based Mavenir to secure a significant 5G contract. Mavenir’s Sanjay Bakaya anticipates favorable prospects once the telco receives funding, citing the scalability and customization benefits of OpenRAN.
