Indian carrier Vodafone Idea (Vi) has awarded Tejas Networks a three-year contract, that will see the vendor supply products for Vi's 4G and 5G rollout.

Tejas, an Indian-based vendor will supply its TJ1400 and TJ1600 packet and optical transmission products for Vi's backhaul capacity.

Vodafone Idea
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Financial terms of the contract were not disclosed by Tejas.

The company's involvement in Vodafone's 4G and 5G networks comes a couple of months after Vi awarded major 4G and 5G contracts to Swedish giant Ericsson.

Two weeks ago, Vi said it had signed a $3.6 billion deal with network vendors Nokia, Ericsson, and Samsung.

"As Vi accelerates its pan-India 4G and 5G rollouts, it is critical to upgrade our backhaul network to be scalable, robust, and future-ready to efficiently manage the expected growth in data traffic and rising bandwidth demands," said Jagbir Singh, CTO of Vodafone Idea.

"We are pleased to welcome Tejas Networks as our wireline network partner in this journey towards VIL 2.0. Their state-of-the-art PTN and OTN products will play a key role in delivering a superior service experience for our customers."

The company is part of the Tata Group, while Panatone Finvest Ltd. (a subsidiary of Tata Sons Pvt. Ltd.) is the majority shareholder in Tejas.

Last year, the vendor confirmed it received a purchase order from state-owned telco Bharat Sanchar Nigam Limited (BSNL) to supply equipment for BSNL's 4G and 5G rollout worth close to $900 million.

"We are proud to be selected as a partner of Vodafone Idea as they embark on an exciting journey to expand and create a nationwide 4G and 5G network in India," added Anand Athreya, CEO and managing director of Tejas Networks.

In October, Vi set out plans to launch its long-awaited 5G network from March next year. The company, which is still yet to launch its 5G network, has fallen behind rival telcos Reliance Jio and Bharti Airtel.

The company will kick off its 5G rollout across 17 cities, and estimates to deploy 5G equipment to 75,000 existing 4G sites over the next three years.

Vi, which was created in 2018 following the merger of Vodafone India and Idea Cellular, has been struggling to pay its dues with its vendor partners after it was saved from the brink of collapse by the Indian government in 2022, which acquired a 35.8 percent stake in the company.

The financial issues have meant that Vi has fallen behind on payments to its tower and equipment vendors, owing 135 billion rupees ($1.6bn).

In June, Vi issued close to $300 million worth of shares to Ericsson and Nokia as part of the company's strategy to clear its dues. It means that Nokia owns a 1.5 percent stake in Vi, while Ericsson owns 0.9 percent of the telco.