Cash-strapped Vodafone Idea closes $3.6 billion deal with Nokia, Ericsson and Samsung for network equipment

Without money and full of debts, Vodafone Idea (Vi) concluded on Sunday a deal worth 3.6 billion dollars with Nokia, Ericsson and Samsung for the supply of network equipment for a period of three years.

The deal marks the first step towards launching the company’s three-year capital investment plan of $6.6 billion (Rs 550 billion), Vi said.

The capital expenditure program is aimed at expanding 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and expanding capacity in line with data growth, according to the company.

“The company has continued with its existing long-term partners, Nokia and Ericsson, and has also brought in Samsung as a new partner.”

Vi said the contracts will allow the Company to quickly capitalize on the latest state-of-the-art equipment to deliver an enhanced customer experience.


Furthermore, the know-how and experience gained by vendors in the Indian market over the past two years will enable the company to embark on a more flexible and modular deployment plan by customizing services for all advanced technologies (4G and 5G), he added. “Furthermore, the new equipment will also lead to energy efficiency gains and hence lower operating costs.” Deliveries for these new long-term awards will begin in the next quarter. The company’s top priority, he says, “is to expand the 4G Coverage “to 1.2 billion Indians.”

“We are committed to investing in emerging network technologies to deliver a world-class experience to our customers. We have started the investment cycle. We are on our VIL 2.0 journey and from now on, VIL will take a smart turn to effectively participate in the growth opportunities of the industry. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that ongoing partnership. We are pleased to begin our new partnership with Samsung. We look forward to working closely with all our partners as we move towards the 5G era,” Akshaya Moondra, CEO, Vodafone Idea Limited.

Meanwhile, the Supreme Court this week rejected a series of pleas by telecom companies, including Vodafone Idea, seeking recalculation of the Adjusted Gross Revenue (AGR) of the companies on the basis of which the government collects spectrum and licence fees from them.

As of March 31, 2024, Vi had outstanding debts to the government worth Rs 2,03,430 crore. The total outstanding includes deferred payment obligations on spectrum worth Rs 1,33,110 crore and adjusted gross revenue (AGR) liability worth Rs 70,320 crore. The company was expecting the court to grant it relief after payment of the last amount, Rs 70,320 crore.

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