Vodafone Idea (Vi), which is cash-strapped and debt-ridden, has signed a $3.6 billion contract with Nokia, Ericsson, and Samsung to supply network equipment over three years. In a press statement released on September 22, the telecom company stated that the agreement is the first step in the implementation of its $6.6 billion (Rs 550 billion) three-year capex plan.
According to Vi, the capital strategy aims to increase 4G population coverage from 103 crore to 120 crore, deploy 5G in key areas, and enhance capacity per data growth. The corporation has retained its previous long-term partners Nokia and Ericsson while also welcoming Samsung as a new partner. These contracts will allow the firm to immediately capitalize on the newest cutting-edge equipment.
Akshaya Moondra, CEO of Vodafone Idea Limited, commented on the development, saying, “We are committed to investing in emerging network technologies to provide our customers with the best-in-class experience.” We have started the investing cycle. We are on the path to VIL 2.0, and VIL will make a smart turnaround to successfully engage in industry development possibilities. Nokia and Ericsson have been our partners since our start, and today represents another milestone in their ongoing cooperation. We are thrilled to begin our new cooperation with Samsung. We look forward to working together with all of our partners as we enter the 5G future.”
Furthermore, the new technology will result in increased energy efficiency, lowering running expenses, according to the announcement. The supplies for these new long-term rewards will begin in the coming quarter. The company’s major objective is to increase its 4G coverage to 120 crore.
Following a recent equity issue of Rs 24,000 crore and a further spectrum acquisition of Rs 3,500 crore in the June 2024 auction, the business has also undertaken some fast-win8 Capex while seeking to finalize these long-term contracts.
These rapid victories were mostly achieved through the deployment of additional spectrum on existing sites, as well as the rollout of certain new locations. This will result in a 15% increase in capacity and 16 million more people covered by the end of September 2024. We are already seeing an improvement in customer experience in some locations where these rollouts have been completed,” Vi added.
For long-term capex, the business is in advanced talks with its existing and new lenders to get Rs 25,000 crore of financing and Rs 10,000 crore of non-fund-based financing. An impartial third party completed a techno-economic appraisal of the company’s long-term predictions, which was one of the primary milestones in this process.