Vodafone Idea Seals $3.6B Network Deal for 4G Expansion, 5G Rollout

25 Sep 2024 , 08:19 PM

Vodafone Idea has finalized a $3.6 billion deal with Nokia, Ericsson, and Samsung for network equipment over the next three years.

This marks the beginning of its $6.6 billion capital expenditure plan aimed at expanding 4G coverage to 1.2 billion people and launching 5G in key markets. The company will also focus on increasing network capacity to support growing data demands.

CEO Akshaya Moondra highlighted the company’s commitment to network investment and growth through partnerships with Nokia, Ericsson, and new partner Samsung.

Vodafone Idea issued preferential shares worth ₹1,520 crore to Nokia and ₹938 crore to Ericsson as part of the deal. Nokia secured over 50% of the deal’s volume, with Ericsson taking 40%, and Samsung handling the remaining portion.

The new contracts aim to help Vodafone Idea compete with Jio and Airtel by upgrading its network and offering better services to customers. The company is also focused on energy efficiency and reducing operating costs through new equipment.

Vodafone Idea seeks to raise ₹25,000 crore in debt funding, having completed a techno-economic evaluation to secure lender support.