Aiming for a turnover after repeated losses, Vodafone Idea has bagged a $3.6 billion deal with Nokia, Ericsson, and Samsung to enhance 4G and roll out 5G, a major infrastructure boost.
Domestic network provider Vodafone Idea recently announced that it has secured a $3.6 billion agreement with mobile and network manufacturing giants Nokia, Ericsson, and Samsung for equipment supply over the next three years. This deal represents the initial phase of Vodafone Idea’s ambitious $6.6 billion capital expenditure plan to enhance its telecommunications infrastructure.
According to a report by Reuters, the company aims to boost its 4G coverage from 1.03 billion to 1.2 billion users, introduce 5G in significant markets, and expand capacity in response to growing data demands.
Formed in 2018 through the merger of Vodafone Group’s Indian operations and Aditya Birla Group’s Idea Cellular, Vodafone Idea has struggled financially, reporting losses each quarter and losing market share to competitors like Bharti Airtel and Reliance Jio.
In early 2024, Vodafone Idea raised capital through a significant follow-on public offer and is in discussions with lenders to secure around $5 billion for 5G rollout and 4G expansion. Equipment deliveries under the new contract are expected to commence in the upcoming quarter, primarily focusing on enhancing 4G services.
Vodafone Idea’s CEO, Akshaya Moondra, stated that the current capital expenditure is being financed through recent equity raises while long-term funding discussions with lenders are ongoing.
Moreover, the Supreme Court recently denied a request from Vodafone Idea and other telecom firms to reassess their outstanding dues to the government, contributing to a steep decline in Vodafone Idea’s stock, which has dropped over 40% this quarter.
