Nokia to build 4G network for Vodafone India
Vodafone Idea is seeking to expand its network coverage and improve data speeds. The company plans to expand its 4G network in more markets with Nokia’s help. Vodafone Idea is India’s top mobile operator. The company had close to 390 million subscribers at the end of 2018. Vodafone Idea was formed after the merger between Vodafone’s (VOD) India subsidiary “Vodafone India” and Idea Cellular. Vodafone owns more than a 45% stake in Vodafone India.
Nokia’s potential 5G customer
For Nokia, the relationship with Vodafone Idea could develop into something bigger in the future. Vodafone Group plans to invest about $3.5 billion in Vodafone Idea to finance a network upgrade. Vodafone is one of the global operators working on the 5G network buildout. Vodafone would probably want to expand the 5G network in India. With Vodafone Idea, Nokia is looking at a potential 5G customer.
Last year, Nokia secured a multiyear 5G contract worth $3.5 billion from T-Mobile (TMUS). Early this month, Nokia secured a five-year 5G contract from US Cellular (USM). Nokia is also one of the vendors that will likely supply equipment for AT&T’s (T) 5G network rollout in the United States.
Nokia generated $7.8 billion in revenues in the fourth quarter ending in December—an increase of 3.2% YoY (year-over-year). Ericsson’s (ERIC) revenues rose 10% YoY in the December quarter.