Vodafone Idea Signs $3.6B 4G Deal With Nokia, Ericsson, Samsung

Vodafone Idea Limited has secured a deal worth USD 3.6 billion (Rs. 300 billion) with Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years.

This agreement marks the first step in the company’s three-year capital expenditure plan of USD 6.6 billion (Rs. 550 billion), according to its official filing. The investment will be used to expand Vodafone Idea’s 4G population coverage from 1.03 billion to 1.2 billion, and to launch 5G services in key markets, as well as increase capacity to meet data growth demands, the filing noted.

“The company has retained its long-standing partners, Nokia and Ericsson, and has also brought on Samsung as a new partner,” the statement read.

Vodafone Idea said that this contract will enable the company to leverage cutting-edge equipment to enhance customer experiences.

“Moreover, the insights and expertise gained by these vendors in the Indian market over the last two years will help the company implement a more flexible and modular rollout plan, customising services for advanced technologies like 4G and 5G. The new equipment will also bring energy efficiency benefits, thereby reducing operational costs,” the company added.

Vodafone Idea stated that supplies from these new long-term agreements will begin in the upcoming quarter.

The company’s primary focus is to extend 4G coverage to 1.2 billion people across India, it said.

Following the recent equity raise of Rs. 240 billion and an additional Rs. 35 billion spent on spectrum acquisition during the June 2024 auction, the company has already implemented several “quick win” capital expenditure projects while finalising these long-term contracts.

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These quick wins have primarily involved deploying additional spectrum at existing sites and establishing new ones.

“This has led to a 15 percent increase in capacity and expanded population coverage by 16 million, which is expected to be achieved by the end of September 2024,” it added.

Akshaya Moondra, CEO of Vodafone Idea Limited, said, “We are committed to investing in emerging network technologies to provide a best-in-class experience for our customers. We have initiated the investment cycle and are on the path of VIL 2.0. From here, VIL will stage a smart turnaround, enabling us to effectively participate in the industry’s growth opportunities. Nokia and Ericsson have been our partners since the beginning, and this is yet another milestone in that long-standing relationship. We are also excited to start our new partnership with Samsung and look forward to collaborating with all our partners as we transition into the 5G era.”

The company also noted that customer experiences have improved in certain regions where these rollouts have been completed.

(INPUTS FROM ANI)