Vodafone Idea Looking to Expand Network via Chinese Suppliers

Vodafone Idea is speculated to be relying on Chinese vendors to expand its telecom and network infrastructure, multiple sources report.

Why is Vodafone Idea Partnering with Chinese Vendors?

The third largest telco has a part of its network with equipment supplied by Chinese vendors Huawei and ZTE. Furthermore, this network requires expansion and Vi has no option but to rely on the aforementioned vendors. Also, there are 6 circles where traffic is getting heavy and expansion is necessary.

Vi has denied the speculation for the time being, stating that they will comply with Government Directives.

However, the chairman of Vodafone Idea Limited, Jagbir Singh, has admitted previously that while the telco is not planning to place any new orders, they are reliant on Huawei and ZTE to supply the part of the network just talked about.

This development comes when government is in process to change telecom licensing norms to bar sourcing from non-friendly regions. This move is to comply with the amendments in the General Financial Rules, 2017, which state that countries sharing a land border with India can be restricted in order to safeguard India's national and cyber security. Furthermore, under the same, public companies will have to cancel tenders if GFR is enforced. However, the directive does not mention replacement of the existing equipment already inducted in the network of telecom operators. Furthermore, it is also not going to affect annual maintenance contracts or updates.