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According to a top executive, Vodafone Idea has begun negotiations with a number of local and foreign telecom vendors and system integrators to investigate gear procurement alternatives for its 5G network. In the absence of competition, the goal is to avoid the potential cost consequences of buying from conventional European vendors Nokia and Ericsson.
The negotiations take place at a time when its larger rivals, Reliance Jio and Bharti Airtel, have either developed their own 5G stack or forged strategic alliances with non-traditional corporations to jointly construct network technology in the country.
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"Yes, we're in talks with a couple of local suppliers as well as some foreign players." On the condition of anonymity, a top firm executive told ET, "We want to examine options for our network to avoid any duopoly of Nokia and Ericsson and to assess the cost savings in the future."
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According to the source, there is doubt about Huawei and ZTE's participation in the country's 5G network rollout, and Samsung is solely serving Jio in the country, so it's "pertinent" for the telecom to look into its alternatives.
After conducting OpenRAN 4G testing, Vodafone Idea is depending on OpenRAN technology for its future 5G networks. In Karnataka and Maharashtra, the telecom had also commercially deployed Mavenir's OpenRAN-based commercial sites, IMS, and packet core.
It had earlier submitted an application with Mavenir to perform an OpenRAN-based 5G trial but had decided not to go forward with it.
"We're keeping a close eye on OpenRAN-related developments in other markets and have begun discussions with a few worldwide suppliers and system integrators who are interested in this innovative method to network deployment." OpenRAN will be a mature technology in 3-4 years. "Right now, we're looking at the cost savings it could provide us," the source added.
According to a source acquainted with Vodafone Idea's plans, the telco is now in exploratory mode and may issue requests for proposals (RFPs) in the near future.
ET's inquiries were not answered by Vodafone Idea.
Unlike traditional radio gears, OpenRAN allows hardware and software to be disaggregated, allowing technology components from many suppliers to coexist with various software providers and lowering telecom costs. According to analysts, OpenRAN allows for more customisation of network architecture and capabilities, which opens up new business lines and improves user experience.
The Indian government recently issued a raft of relief measures for the Indian telecom industry, giving Vodafone Idea a new lease on life. The telco has agreed to a four-year embargo on spectrum payments.
With the relief, the telecom operator has begun work on improving its network capabilities and is accelerating its 5G trials with a variety of partners, including Nokia, Ericsson, and L&T. For other use cases, the telco will collaborate with start-ups.
Bharti Airtel is also working on 5G network technology in India, both on its own and in conjunction with local, US, and Japanese companies. It intends to bring a broad ecosystem of partners, including Mavenir, Xilinx, and Altiostar (owned by Rakuten), as well as NEC and Sercom from Japan and Taiwan.
Sunil Mittal's telecom company teamed up with Tata Sons and Tata Consultancy Services (TCS) earlier this year to pilot and install the latter's 5G stack, which comprises 5G radio and core technologies.
Reliance Jio, on the other hand, claims to have developed its own end-to-end 5G stack, which it is now testing in various parts of the country as part of its ongoing 5G trials.
Both Jio and Airtel plan to deploy and scale these technologies first in India, before expanding to other carriers in Africa, West Asia, and Eastern Europe.
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