Telecom operator Vodafone Idea on Sunday said it has concluded a $3.6 billion deal with Nokia, Ericsson, and Samsung to supply network equipment over three years and strengthen its footprint.
According to the company, the deal marks the first step towards rolling out its 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 industry growth opportunities,” said Akshaya Moondra, CEO of 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 expanding capacity in line with data growth.
“We look forward to working closely with all our partners as we move into the 5G era,” Moondra said.
The contracts will allow the telecom player to capitalise on the latest state-of-the-art equipment to offer an enhanced customer experience. The company said the new equipment would also lead to energy efficiency gains and, thus, lower operating costs. The supplies for these new long-term 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 ₹240 billion and additional spectrum acquisition of ₹35 billion in the 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 a 15 per cent capacity boost and increased population coverage by 16 million by September.
The company said it is also in the advanced stage of discussions with its existing and new lenders to tie up ₹250 billion of funded and ₹100 billion of non-fund-based facilities.
—IANS
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