Vodafone Idea (Vi) has teamed up with American network technology giant Cisco to overhaul its network infrastructure. The telecom operator will deploy Cisco’s Multiprotocol Label Switching (MPLS)-based transport network, which is expected to strengthen reliability and manage high data traffic more effectively.
The company said that the upgrade is set to benefit both consumers and businesses, offering faster internet speeds for activities like video streaming, gaming and browsing, as well as secure connectivity for enterprises.
The move comes as telecom operators in India continue investing in network upgrades to meet growing data demands. Last month, Reliance Jio announced a similar initiative to expand its fibre-optic network, while Bharti Airtel partnered with Nokia to enhance its 5G capabilities.
Jagbir Singh, Chief Technology Officer, Vi, said: “Our collaboration with Cisco demonstrates our commitment to staying at the forefront of network technology. Cisco’s proven expertise in MPLS solutions will empower our network to automate critical network functions, optimise traffic management, and rapidly adapt to changing market demands.”
Gordon Thomson, Vice President for Service Provider – EMEA at Cisco, added: “Building a 4G/5G backhaul network is essential for seamless connectivity. With Cisco’s IP/MPLS solutions, Vi can deliver faster, more reliable and scalable digital experiences across India.”
The partnership aligns with financially struggling telecom operator efforts to modernise its services amid intense competition in India’s telecom sector. The company has been focusing on network improvements to retain customers and improve service quality.
Industry analysts suggest such upgrades are critical as data consumption rises. The Telecom Regulatory Authority of India (TRAI) reported a 23% increase in average monthly data usage per subscriber in the past year, underscoring the need for robust infrastructure.
Vi is the only operator which continues to lose active users, with TRAI’s January 2025 report showing a decline to 175.83 million—a drop of 0.7 million from December 2024—pushing its overall subscriber base perilously close to the 200 million mark, with a risk of slipping below if the trend persists.
Despite network upgrades, Vodafone Idea’s inability to curb subscriber churn remains a concern, as shrinking active users—who drive revenue—threaten financial stability, making it critical for the telco to attract high-paying 4G/5G customers to boost ARPU and revenues in the near term.
