Why Vodafone Idea's Share Price Is Climbing 4% Today

Vodafone Idea’s share price was on the rise on Thursday amid reports that the company is in talks with telecom equipment maker Ericsson to buy gear for its 5G expansion.

What Happened: Vodafone Idea is reportedly in discussions to secure new 4G and 5G equipment from Ericsson, the Swedish telecom equipment manufacturer, as the former is set to commence a network expansion in the coming two to three months following a successful follow-on offer.

Nitin Bansal, managing director of Ericsson India, confirmed the ongoing talks in an interview with Moneycontrol. He expressed optimism about supporting Vodafone Idea’s 5G rollouts once they launch.

Currently, Ericsson supplies 5G equipment to peers Reliance Jio and Bharti Airtel, who also source from Nokia. Vodafone Idea, planning to start its 5G rollout in six months, is prioritising the expansion of its 4G capacity and coverage in the short term to stem subscriber losses.

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Vodafone Idea's 4G network is powered by Nokia in nine circles and Ericsson in eight circles, while Huawei and ZTE equipment cover seven and five circles, respectively.

All three major private telecom operators in India are expected to participate in the upcoming spectrum auction. Bansal told the business daily that he anticipates further discussions following the auction.

Both Jio and Airtel are keen to tap into the private 5G network market, with Airtel already powering eight private 5G networks.

Price Action: Vodafone Idea’s share price was up 4.07% at ₹14.05 in morning trade on Thursday.

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