Vodafone Idea has secured a $3.6 billion telecoms equipment agreement with Nokia, Ericsson, and Samsung. This deal includes the supply of both 4G and 5G network equipment over the next three years, aiming to expand 4G population coverage from 1.03 billion to 1.2 billion and launch 5G in selected markets.
The move represents a significant step for Vodafone Idea in enhancing its service offerings and network efficiency. By collaborating with Samsung for the first time, and continuing its longstanding partnerships with Ericsson and Nokia, Vodafone Idea aims to deliver advanced mobile services to a broader audience while improving operational cost efficiency.
CEO Akshaya Moondra expressed optimism stating, “We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities.” He also highlighted the historical significance of their partnerships with Nokia and Ericsson and welcomed the new alliance with Samsung.
This substantial investment is funded through the $4.4 billion raised by Vodafone Idea earlier this year via equity financing. Despite this influx of capital, Vodafone Idea has faced financial struggles and competitive pressure in the Indian market. The telecom giant has been on the brink of bankruptcy, losing subscribers to competitors like Reliance Jio and Bharti Airtel.
Vodafone Idea lags in the 4G rollout compared to its rivals and hasn’t commercially launched 5G at scale. Additionally, the company’s financial burden includes billions owed to the government from Adjusted Gross Revenue (AGR) payments dating back to 2019. Recently, the Indian Supreme Court dismissed appeals to recalculate the AGR dues, triggering a 15% drop in Vodafone Idea’s share price.
