Vodafone Idea finalises $3.6 bn deal with global partners to boost India footprint
New Delhi, Sep 22 (IANS) Telecom operator Vodafone Idea on Sunday said it has concluded a $3.6 billion deal with Nokia, Ericsson and Samsung for supply of network equipment over a period of three years and strengthen its footprint.
According to the company, the deal marks the first step towards the rollout of the company’s transformative three-year capex plan of $6.6 billion.
“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 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, said the company.
“We look forward to work closely with all our partners as we move into the 5G era,” said Moondra.
The contracts will allow the telecom player to capitalise on the latest state-of-the-art equipment to offer enhanced customer experience.
In addition, said the company, the new equipment will also lead to efficiency gains in energy and thus lower operating costs. The supplies against these new longterm awards will start in the coming quarter.
“The top priority for the company is to expand the 4G coverage to 1.2 billion Indians,” it said.
Post the recent equity raise of Rs 240 billion and additional spectrum acquisition of Rs 35 billion in June 2024 auction, the company has also executed some quick win Capex, while simultaneously working on concluding these long-term contracts.
This will result in 15 per cent boost in capacity and an increase in population coverage by 16 million by September.
The company said it is also in advanced stage of discussions with its existing and new lenders to tie up Rs 250 billion of funded and Rs 100 billion of non-fund-based facilities.
—IANS
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