Samsung frontrunner to bag network deals from Vi

Replying to ET’s questions, a speaker for Vi stated the telco is “in advanced stages of conversations” with numerous suppliers for enhancement and rollout of its 4G and 5G network infrastructure. “We will supply any kind of additional upgrade at a proper time,” the representative said in an e-mail.

Samsung is set to win network offers from Vodafone Concept (Vi) to change Chinese 4G equipment in four telecom circles. This $70 million agreement could increase to consist of 5G devices, marking a significant innovation for Samsung in the Indian telecom market.

They included that the final offer size might be considerably larger, with Samsung most likely to additionally supply 5G network equipment in the four circles to Vi, whose financials obtained an increase with a current Rs 24,000-crore equity fundraise.

Market insiders also claimed Vi’s European vendors were not keen to switch the telco’s existing Chinese 4G equipment in the four circles as taking apart old network equipment and replacing them with brand-new, non-Chinese 4G/5G gear could prove pricey.

Samsung is believed to have pressed debt-laden Vi to equip bank guarantees/letters of credit report (LCs) to make certain and reduce threats guaranteed repayments against the suggested 4G gear swaps/supplies to the telco, according to individuals cited above.

After the preliminary equity fundraise, Vi has remained in talks with lenders to increase another Rs 25,000 crore using loans, and an added Rs 10,000 crore of non-fund-based facilities to drive its targeted Rs 50,000-55,000 crore capex over the following 3 years.

Much goes to stake for Vi– the telecommunications JV between UK’s Vodafone and India’s Aditya Birla Team. This, given that it needs to finalise pending network equipment purchase bargains quickly to connect 4G insurance coverage gaps and turn out 5G in priority circles to rein in consumer losses and compete better with larger competitors, Jio and Airtel that have currently released 5G services country wide.

Samsung is also believed to be boldy negotiating with Vi for extra 4G/ 5G gear supply agreements in some other top circles where the telco’s current network vendors are Finland’s Nokia and Sweden’s Ericsson.

Top market executives stated if Samsung wins the 4G gear contracts from Vi, it will be win-win for both business. For Vi, it would lead the way for it to present greenfield 5G networks in vital markets where the business is presently not able to do so as government policies bar 5G in circles where a telco currently uses Chinese network devices.

Samsung is most likely to win contracts from Vi to provide telecommunications equipment in Punjab, Bihar, Odisha and Karnataka circles, in an agreement approximated at around $70 million (Rs 600 crore), consisting of logistics and labour costs, the people stated.

For Samsung, the possibility of fresh 4G and 5G bargain wins from Vi will offer a much- required increase to its worldwide networks service. Much more so, considering that the Korean vendor– the single 4G devices supplier to Reliance Jio– experienced a large impact when India’s telecommunications market leader picked Nokia and Ericsson for its whole 5G network equipment demands. India’s No 2 telco, Bharti Airtel as well had acquired mass of its 5G equipment from both European suppliers.

For Samsung, the prospect of fresh 4G and 5G deal wins from Vi will provide a much- required increase to its global networks service. Much more so, considering that the Oriental supplier– the single 4G tools vendor to Dependence Jio– experienced a big strike when India’s telecom market leader selected Nokia and Ericsson for its entire 5G network equipment needs. India’s No 2 telco, Bharti Airtel as well had acquired mass of its 5G gear from the two European vendors.