Dailymirror.news,September 23, 2024:Vodafone Idea Limited (VIL) has entered into a $3.6 billion (approximately ₹30,000 crore) mega deal with global technology giants Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years.

This deal marks the first step towards VIL’s three-year transformational capital expenditure plan, with an estimated spend of $6.6 billion (around ₹55,000 crore). The objective is to expand 4G population coverage from 1.03 billion to 1.2 billion people, launch 5G services in key markets, and enhance network capacity to meet the growing demand for data.

In a strategic move, the company has brought onboard long-time partners Nokia and Ericsson, along with new partner Samsung, to drive its expansion plans. The advanced equipment provided through these contracts will help Vodafone Idea roll out technology faster, thereby offering a superior experience to its customers.

Moreover, lessons learned from the Indian market in recent years and customizations in the latest technologies (both 4G and 5G) will streamline VIL’s expansion strategy.

The new equipment will also contribute to improving energy efficiency, reducing operational costs, and optimizing overall network management. Supply deliveries under these long-term contracts are expected to begin in the next quarter, with the primary focus on expanding 4G coverage to an additional 170 million people.

In recent months, Vodafone Idea has made significant strides in strengthening its position. The company raised ₹24,000 crore in equity and purchased an additional ₹3,500 crore worth of spectrum in the June 2024 auction.

VIL has also upgraded its existing sites to accommodate more spectrum and expanded to new locations, aiming for a 15% capacity boost and population coverage expansion by 16 million people by the end of September 2024. Initial reports from regions where the expansion is complete show an improvement in customer experience.

Speaking on the deal, Vodafone Idea Limited CEO Akshaya Moondra said, “We are committed to investing in cutting-edge network technologies to provide a best-in-class experience for our customers. We have initiated the investment cycle and launched the VIL 2.0 journey.

This partnership with Nokia and Ericsson marks another milestone in our long-standing relationship, and we are excited to onboard Samsung as we step into the 5G era. We look forward to working with all our partners in this transformative phase.”

The equity infusion from recent fundraising activities is currently being used for capital expenditure. The company is in the final stages of negotiations with existing and new lenders for fund-based facilities worth ₹25,000 crore and non-fund-based facilities of ₹10,000 crore for long-term capital expenditure.

A third-party assessment of VIL’s technical and financial outlook has been completed, and the report has been shared with all banks and financial institutions. Based on this report, internal evaluations and approval processes are underway at these banks.

This mega deal marks a significant step for Vodafone Idea in securing its future and expanding its market presence in India’s telecom landscape.