Vodafone signed new agreements with Ericsson, Nokia and Samsung
Indian carrier Vodafone Idea has concluded different deals worth $3.6 billion with Nokia, Ericsson and Samsung for the supply of network equipment over a period of three years.
In a release, the Indian telco noted that the deal marks the first step towards the implementation of the company’s three-year capex plan of nearly $6.6 billion. The capex program is directed towards expanding the 4G population coverage from current 1.03 billion people to 1.2 billion people, launching 5G technology in key markets as well as network capacity expansion in line with data growth.
In addition, the new equipment will also lead to efficiency gains in energy and thus lower operating costs, the operator said.
“We are committed to invest in emerging network technologies to provide a best-in-class experience to our customers,” said Akshaya Moondra, CEO of Vodafone Idea. ”We have kick-started the investment cycle. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to work closely with all our partners as we move into the 5G era.”
The telco also noted that the capex is being funded from its move earlier in the year to raise INR240 billion ($4.4 billion) in equity. For its long-term capex, the company said it is in advanced discussions with existing and new lenders to secure additional funding.
In June, Vodafone Idea agreed to give Nokia and Ericsson equity stakes valued at INR24.6 billion to settle outstanding payments, granting them 1.5% and 0.9% interests, respectively.
The company had acquired spectrum in the 3.3 GHz and 26 GHz bands during the 2022 auctions.
Vodafone Idea, which is a joint venture between Vodafone and Aditya Birla Group, had completed in June its 5G rollout obligation in all the 17 telecom circles across the country,
In April, Vodafone Idea unveiled plans to deploy 10,000 5G sites across 17 service areas in the current fiscal year (ending 31 March 2025) and another 12,000 in fiscal 2026.
Rival operators Reliance Jio Infocomm and Bharti Airtel had already offering 5G services nationwide.
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