Cash-strapped Vodafone Idea snags $3.6 bn network gear deal with Nokia, Ericsson & Samsung

“We are dedicated to purchase arising network innovations to provide a best-in-class experience to our consumers. We have actually started the financial investment cycle. We get on our journey of VIL 2.0 and from hereon, VIL will organize a wise turnaround to successfully join the sector growth opportunities. Nokia and Ericsson have been our partners since our beginning and this marks one more milestone in that proceeding collaboration. We delight in to begin our brand-new partnership with Samsung. We eagerly anticipate work carefully with all our companions as we relocate into the 5G era,” Akshaya Moondra, CEO, Vodafone Idea Limited.

Earlier in 2024, the firm marketed shares to institutional investors, raised funds via the country’s largest-ever follow-on public offer and is additionally in talks with loan providers as component of its plans to increase around $5 billion to turn out 5G network solution, broaden 4G coverage and reclaim market share.

Even more, the understandings and learnings gotten by the suppliers in the Indian market over the last two years, will certainly make it possible for the company to embark on a more modular and adaptable rollout strategy by customising the solutions for all innovative technologies (4G & 5G), it included.

Vodafone Idea, developed by a merger between the Indian arm of UK’s Vodafone Team and Aditya Birla Group’s Idea Cellular in 2018, has actually uploaded a loss in every quarter as it shed market share to bigger competitors Bharti Airtel and Dependence Jio.

The capex program is guided in the direction of broadening the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in vital markets and ability expansion in accordance with information growth, based on the business.

Vodafone Concept has actually completed a $3.6 billion take care of Nokia, Ericsson, and Samsung to supply network devices over the following 3 years. This agreement becomes part of a more comprehensive $6.6 billion capital investment strategy focused on expanding 4G coverage from 1.03 billion to 1.2 billion, introducing 5G in crucial markets, and improving capacity to satisfy growing data demands.

On the other hand, the Supreme Court today denied a set of pleas by telecom firms, consisting of Vodafone Idea, for re-computation of Adjusted Gross Revenue (AGR) of the business on the basis of which the federal government accumulates spectrum and permit charges from them.