New Delhi: Vodafone Idea, a leading telecommunications provider in India, has concluded a significant deal worth ~USD 3.6 billion (~Rs. 300 billion) with Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years. This marks a crucial step in the company’s ambitious three-year capex plan of ~USD 6.6 billion (Rs. 550 billion).
The primary focus of the capex program is to expand 4G population coverage from 1.03 billion to 1.2 billion, introduce 5G services in key markets, and enhance network capacity to meet growing data demands. By partnering with Nokia, Ericsson, and Samsung, Vodafone Idea aims to leverage the latest state-of-the-art technology to deliver superior customer experiences.
The new network equipment will not only improve efficiency and reduce operating costs but also enable Vodafone Idea to customize its services for advanced technologies like 4G and 5G. This flexibility will allow the company to adapt to the evolving needs of the market and provide tailored solutions to its customers.
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Vodafone Idea has already taken initial steps to boost its network capacity and coverage by deploying more spectrum on existing sites and rolling out new sites. This has resulted in a ~15% increase in capacity and an expansion of population coverage by 16 million by the end of September 2024.
Akshaya Moondra, CEO of Vodafone Idea, expressed the company’s commitment to investing in emerging network technologies to provide a world-class experience to its customers. He emphasized the significance of this deal in VIL 2.0, a strategic turnaround aimed at effectively participating in the industry’s growth opportunities.
To fund this substantial capex, Vodafone Idea is in advanced discussions with its existing and new lenders to secure Rs. 250 billion of funded facilities and Rs. 100 billion of non-fund-based facilities. The recent completion of a techno-economic evaluation by an independent third party has provided valuable insights to the banks involved in the funding process.
With the completion of this major network equipment deal, Vodafone Idea is well-positioned to execute its ambitious growth plans and deliver innovative services to its customers in the Indian market.
