Vodafone Idea has cracked a Rs 30,000 crore deal with Nokia, Ericsson, and Samsung to receive supply for equipment over a period of three years. Vodafone Idea said, “The deal marks the first step towards the roll-out of the company’s transformative three-year capex plan of $6.6 billion (550 billion rupees). The capex programme is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth.”
Vodafone Idea stated that supplies under the new contract will start coming next quarter, emphasising that expanding 4G coverage continues to be its highest priority.
Vodafone Idea awards Rs 30,000-cr contract to Nokia, Ericsson, Samsung for supply of 4G, 5G network gears: Company statement
— Press Trust of India (@PTI_News) September 22, 2024
The Business Standard quoted Chief Executive Officer Akshaya Moondra as saying, “The Capex is currently being funded out of the equity raise. For the long-term Capex, the company is in advanced stage of discussions with its existing and new lenders to tie up Rs 25,000 crore of funded and Rs 10,000 crore of non-fund-based facilities
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Vodafone Trying To Claw Its Way Out Of The Ditch
Vodafone Idea, the entity born from the 2018 merger between Vodafone Group’s Indian unit and Aditya Birla Group’s Idea Cellular, has consistently reported quarterly losses. The company has struggled to compete with bigger players in the Indian telecom market, such as Bharti Airtel and Reliance Jio, which have steadily eaten away at its market share. In an effort to stabilise its financial position and regain competitiveness, Vodafone Idea initiated several capital-raising measures earlier in 2024.
These included a significant sale of shares to institutional investors, as well as launching the country’s largest-ever follow-on public offering. Additionally, the company has been engaged in discussions with lenders, aiming to secure approximately $5 billion in funding. The raised capital is intended to accelerate its rollout of 5G services, expand its 4G network infrastructure, and ultimately help the telecom giant regain a foothold in the rapidly evolving market.