Shares of Vodafone Idea Ltd. gained as much as 5% hitting a upper circuit on Thursday, October 23, extending their winning streak to a third straight session. The development comes after a Moneycontrol report, stated that the telecom operator is increasingly partnering with Indian network equipment makers such as Tejas Networks, HFCL, and HCLTech to cut costs, speed up network rollouts, and localise its 4G and 5G infrastructure. The move marks a strategic shift toward homegrown telecom technology as the company works on a turnaround plan.
Vodafone Idea has begun trialling 4G and 5G wireless equipment from Tejas Networks in one of its circles and may consider commercial orders based on performance."Vodafone Idea wants to work with more Indian vendors for our requirements wherever possible to cut costs and have a faster time to market. We are currently trialling Tejas 4G and 5G equipment in one of the circles. We are seeing if it is a mature technology as per our requirements. If they are good, we will be happy to deploy," the report quoted an official as saying.
Beyond Tejas, Vi is also strengthening its partnerships with other domestic technology firms. HCLTech has been roped in to provide Self-Optimising Network (SON) technology, while HFCL has received a contract to supply IP/MPLS routers for the telco’s 5G network. These Indian vendors will join existing multinational suppliers already working with Vi in several circles. The company is currently deploying 4G and 5G equipment across 17 priority circles as part of a broader effort to reduce customer churn and improve network experience. Vodafone Idea shares have delivered steady gains in recent months. The telecom stock has rallied 8% over the past month and surged 26% in the last three months. On a year-to-date (YTD) basis, the stock is up 18%, while it has gained 14% over the past year. Over a five-year period, however, Vodafone Idea share price has risen just 4%.