Vodafone Idea Signs $3.6B Network Equipment Deal
Vodafone Idea Signs $3.6B Network Equipment Deal

Vodafone Idea Signs $3.6B Network Equipment Deal

News summary

Vodafone Idea (Vi) has signed a $3.6 billion deal with Nokia, Ericsson, and Samsung to supply 4G and 5G network equipment over three years. This marks the first step in Vi's $6.6 billion, three-year capital expenditure plan aimed at expanding 4G coverage from 1.03 billion to 1.2 billion people and launching 5G services in key markets. The deal is funded by the recent $3 billion equity raise and ongoing discussions with lenders for additional funding. This investment is critical for Vi, which has struggled with debt and competition from Reliance Jio and Bharti Airtel. The Supreme Court's recent verdict against recalculating adjusted gross revenue (AGR) dues adds to Vi’s financial challenges. Supplies from the new contracts will start arriving in the next quarter, focusing on improving network capabilities and operational efficiencies.

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