Telecom equipment maker Nokia has been selected by Vodafone Idea (VIL) to enhance and expand its IP backhaul network in India under a three-year agreement.
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The partnership — announced on Thursday — will involve the deployment of Nokia’s IP/MPLS solutions across multiple telecom circles, ensuring a more reliable network to handle increasing data traffic.
Vodafone Idea had nearly 200 million subscribers including around 125 million 4G subscribers at the end of December, 2024.
Vodafone Idea’s broadband coverage has reached 370,200 Census towns and villages. The population coverage on 4G is more than 1.07 billion covering around 80 percent of population. Vodafone Idea has 460,300 broadband — 3G, 4G and 5G — sites.
Vodafone Idea earlier revealed that its Capex spend for Q3FY25 was Rs 32.1 billion, taking the capex for the nine months to Rs 53.3 billion. The network rollout will accelerate further in Q4FY25 with the full year expected capex of ~Rs 100 billion.
Nokia said it will supply its 7750 SR and 7250 IXR series IP routers, modernizing Vodafone Idea’s transport network. This upgrade will strengthen VIL’s core, aggregation, and access layers, improving connectivity for both mobile and enterprise services. Additionally, the deployment will replace legacy infrastructure, optimize operational costs, and support future technological advancements such as 5G.
Vodafone Idea has reported Opex of Rs 64,049 million, net loss of Rs 66,093 million and revenue of Rs 111,173 million during the October-December quarter of 2024.
Nokia’s involvement extends beyond hardware supply, including advanced planning, design, installation, and migration services with automation-based documentation. These efforts will enhance Vodafone Idea’s network efficiency, sustainability, and cost-effectiveness while addressing increasing demands for high-speed and resilient connectivity.
Importance of Backhaul Network for Vodafone Idea
A backhaul network is a crucial component of a telecom infrastructure that connects cell sites to the core network, ensuring smooth data transmission and overall service efficiency. For Vodafone Idea, strengthening its backhaul network is essential for several reasons:
Enhanced Network Capacity & Reliability: With rising data consumption due to AI applications, immersive gaming, and video conferencing, a robust backhaul network ensures uninterrupted connectivity for both consumers and enterprises.
Seamless Transition to 5G: Modernizing the IP backhaul network with Nokia’s solutions will help Vodafone Idea efficiently support 5G rollout and network densification, leading to better performance and user experience.
Cost Optimization & Scalability: By replacing outdated infrastructure, Vodafone Idea can lower operational costs, streamline network management, and scale up effortlessly to accommodate future demands.
Energy Efficiency & Sustainability: The deployment of energy-efficient backhaul solutions will help reduce power consumption, aligning with Vodafone Idea’s sustainability goals.
By upgrading its backhaul infrastructure, Vodafone Idea aims to provide superior connectivity, enhance customer experience, and position itself as a key player in India’s evolving telecom landscape.
