Vodafone Idea Seals ₹29,880 Cr Deal With Nokia, Ericsson, And Samsung

In a significant development, Vodafone Idea Limited has finalised a $3.6 billion (around ₹29,880 crore) deal with three global network partners, marking a crucial stride in its capital expenditure plan.

What Happened: Vodafone Idea confirmed on Sunday that it has wrapped up a $3.6 billion deal with Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years. This deal is a part of the company’s ambitious three-year capital expenditure plan of $6.6 billion (around ₹55,000 crore).

The investment aims to expand the 4G population coverage from 103 crore to 120 crore, launch 5G in key markets, and increase capacity in line with data growth. The company has continued its long-term partnerships with Nokia and Ericsson and has also brought Samsung on board as a new partner.

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“We are committed to investing in emerging network technologies to provide a best-in-class experience to our customers. 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,” said Akshaya Moondra, CEO, Vodafone Idea.

The company is currently funding the capital expenditure from the equity raise. For the long-term capital expenditure, the company is in the advanced stage of discussions with its existing and new lenders to tie up ₹25,000 crore of funded and ₹10,000 crore of non-fund-based facilities.

Earlier in the week, the Supreme Court upheld the adjusted gross revenue (AGR) verdict, rejecting the telecom giant’s plea for a recalculation of dues. This ruling could have a significant impact on the company’s market standing.

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