Vodafone Idea taps Cisco to power 4G/5G backhaul: Will it be enough to catch up with Jio and Airtel?

In a deliberate push to boost its network capabilities, Vodafone Idea (Vi) announced its collaboration with global networking leader Cisco to deploy a Multi-Protocol Label Switching (MPLS) transport network. With this partnership, Vi aims to upgrade its 4G and 5G services across India, addressing the rising demand for high-speed and reliable connectivity.

Multi-Purpose Label Switching (MPLS) is a high-performance network routing technique, widely used by telecom operators and enterprises to increase the speed and consistency of data transmission.

With MPLS technology, Vi looks to be more efficient in its network traffic, reduce latency, and improve the overall service quality for its consumer, retail, and enterprise customers.

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This cooperation comes at a crucial point for Vi, as the company faces a cutthroat competition from corporate giants like Airtel and Reliance Jio. Both industry peers have formerly partnered with Cisco to amplify their network infrastructures.

In 2017, Reliance Jio collaborated with Cisco to implement an all-IP digital services platform, leveraging MPLS technologies to aid its expansive data services. Similarly, in 2019, Airtel allied with Cisco to develop India’s largest 5G-ready IP-based network, focusing on automation and scalability.

For Vi, the alliance with Cisco extends beyond technological advancements, but also about survival and relevance in the rapidly maturing telecom sector.

The Indian government currently maintains a 48.99 per cent stake in Vi, accumulated through the conversion of interest dues into equity. However, the government has explained that it does not intend to raise its stake beyond this point and awaits the company’s promoters to take the deal in its revival efforts.

Vi targets to regain customer trust, improve service delivery, and contribute to India's digital transformation by backing this robust and future-ready network infrastructure. The deployment of Cisco’s MPLS transport network is a step towards achieving these objectives, ensuring that Vi remains a key player in the country’s telecom landscape.

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