Highlights
- Vodafone Idea inks a $3.6 billion deal with Nokia, Ericsson, and Samsung.
- The deal is part of a $6.6 billion capex plan aimed at network expansion.
- Vi aims to increase 4G population coverage from 1.03 billion to 1.2 billion.
- Company to launch 5G in key markets as part of its three-year capex strategy.
- Investor meeting set for September 23 to discuss financial outlook.
- Vodafone Idea’s AGR dues stand at over ₹70,300 crore.
- Vi shares closed 1.35% higher on Friday despite a 38% drop in 2024.
Vodafone Idea Ltd. (Vi), the debt-laden telecom giant, has signed a massive $3.6 billion (₹30,000 crore) deal with Nokia, Ericsson, and Samsung to improve its network infrastructure over the next three years.
This agreement marks a significant step in Vi’s $6.6 billion capital expenditure (capex) plan aimed at improving 4G coverage, expanding capacity, and launching 5G in some important regions across India.
The telecom operator’s decision to continue with long-term partners Nokia and Ericsson, while also bringing Samsung on board, showcases its commitment to revamping its network to meet increasing data demands and deliver better coverage.
The deal was formalized through a regulatory filing by the company on September 22.
Vodafone Idea Focuses on 4G Coverage and 5G Rollout
The primary objective of this deal is to boost Vodafone Idea’s 4G population coverage from 1.03 billion to 1.2 billion, with the company stating that the new network equipment will help reduce operating costs by increasing energy efficiency.
The supplies from these contracts will begin in the next quarter, signaling a quick start to the planned upgrades.
Vodafone Idea’s capex plan also includes the introduction of 5G services in key markets, reflecting its commitment to staying competitive in the evolving Indian telecom landscape.
After raising ₹24,000 crore in equity and acquiring additional spectrum worth ₹3,500 crore in the June 2024 auction, Vi has already initiated “quick win” capex projects.
These efforts include the deployment of more spectrum on existing sites and the installation of new sites, resulting in a 15% capacity increase and improved coverage for an additional 1.6 crore people by the end of September 2024.
Investor Meeting Announcement and AGR Dues
To keep investors informed, Vodafone Idea has scheduled a crucial meeting with analysts and investors on September 23.
Senior executives, including CEO Akshaya Moondra and CFO Murthy GVAS, will lead the discussion.
This meeting comes at a time when the company faces mounting financial challenges, particularly after the Supreme Court dismissed petitions concerning the re-calculation of Adjusted Gross Revenue (AGR) dues, leaving Vodafone Idea with over ₹70,300 crore in AGR liabilities.
Despite these challenges, Vi’s shares closed 1.35% higher at ₹10.52 on Friday, even though the stock has experienced a 38% decline in 2024.
