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Friday, 23 November 2018 07:17

Vodafone-Idea partners with Huawei, ZTE; finalises 4G network deals worth $1.4 billion

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Chinese tech major Huawei and ZTE have won over Nokia in becoming the 4G partners of Vodafone Idea. The Chinese network vendors offered more attractive prices and flexibility in payment terms over unlike Ericsson and Nokia, which had quoted higher rates and sought payments at the point of deployment itself.

India's largest telco is now focussing on costs in a bid to realise Rs 14,000 crore worth of annual synergies two years ahead of time.After a tight battle for the overall contract likely worth $1.3-1.4 billion (Rs 9,230-9,940 crore), Finland’s Nokia and Sweden’s Ericsson will collectively meet roughly 65% of Vodafone Idea’s network gear requirements, while the two Chinese vendors will handle the remaining 35%, people familiar with the matter said. Previously, the Europeans met some 80% of the cumulative telecom equipment needs of Vodafone India and Idea Cellular before their merger, which was completed on August 31.

As per media sources, Vodafone Idea will shortly place purchase orders (POs) with Nokia, Ericsson, Huawei and ZTE for 4G network gear, aggregating roughly $1.3-1.4 billion as nearly 30% of existing equipment will be reused in smaller towns to optimise costs and improve capex efficiency.

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