Samsung to supply India's Vodafone Idea with estimated $720M in network equipment

Samsung Electronics has entered a partnership with the Indian telecom to provide 4G, 5G and network expansion equipment for an estimated $720 million.

Samsung Electronics' Seocho office building in southern Seoul [NEWS1]

Samsung Electronics is set to provide network equipment worth an estimated $720 million to the Indian telecom operator Vodafone Idea (VIL) over the next three years as part of a $3.6 billion deal that also includes the operator’s other partners, Nokia and Ericsson.

Samsung, Nokia and Ericsson will supply 4G and 5G network equipment to the operator, marking the first step of realizing the company’s transformative three-year capital expenditure plan of $6.6 billion, according to the Indian company’s regulatory filing on Sunday.

The investments will be used to expand its 4G population coverage, introduce 5G in key markets and expand capacity in line with data growth.

Samsung is a fresh addition to VIL's partnerships, in addition to long-term ties with Nokia and Ericsson. "We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in industry growth opportunities,” said VIL CEO Akshaya Moondra in a press release. “Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung.”

Samsung’s speculated investment share among the three is reported to be 20 percent, or $720 million, while the other two will each take a 40 percent share in the deal.

The supply contract begins from the fourth quarter of this year.

A Samsung spokesperson confirmed the supply deal, but declined to confirm the amount of the investment.

With this new order, Samsung will now supply 5G network equipment to all three major telecom operators in India.

The Korean electronics maker signed a contract to provide 5G equipment to Bharti Airtel, the second-largest operator in India, in August 2022.

Reliance Jio, the country’s largest telecom operator by number of subscribers, is also working with Nokia, Ericsson and Samsung for 5G deployment.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]