Vodafone Idea (Vi), a cash-strapped and heavily indebted company, has reached an agreement for $3.6 billion with Nokia, Ericsson, and Samsung to deliver network equipment over three years. The telecom player stated in a statement released on September 22 that the agreement is the first step towards implementing its $6.6 billion (Rs 550 billion) over three years of capital expenditures.
Vodafone Idea Aims To Enhance The 4G Population Coverage
According to Vi, the capital expenditure program aims to enhance the 4G population coverage from 103 crore to 120 crore, introduce 5G in strategic markets, and increase capacity in tandem with the rise of data. The corporation has retained its longstanding partnerships with Ericsson and Nokia, and it has welcomed Samsung as a new partner.
According to Vi, these contracts will enable the business to immediately take advantage of the newest, cutting-edge machinery to provide a better client experience.
Vodafone Idea CEO Expresses His Excitement
CEO of Vodafone Idea Limited Akshaya Moondra commented on the news, saying, “We are committed to investing in emerging network technologies to provide our customers a best-in-class experience.” The cycle of investments has begun. We are currently embarking on the VIL 2.0 adventure, and going forward, VIL will execute a strategic repositioning to fully use the expansion prospects within the industry. Since our founding, Nokia and Ericsson have been our partners, and this is yet another significant development in that ongoing relationship. We are excited to begin working with Samsung in this new alliance. As we transition into the 5G era, we are excited to collaborate closely with all of our partners.
According to the announcement, the new machinery will also result in increased energy efficiency and decreased running expenses. Beginning in the upcoming quarter, supplies will be made against these new long-term rewards. The company’s main goal is to reach 120 crore people with 4G coverage.
Vodafone Idea Expands Capacity By 15% With Rapid Spectrum Additions
The company has completed some quick wins at Capex in addition to the recent equity issue of Rs 24,000 crore and the additional spectrum acquisition of Rs 3,500 crore in the June 2024 auction. At the same time, it has been working towards finalizing these long-term contracts.
The majority of these rapid successes came from adding more spectrum to already-existing sites and launching a few new ones. By the end of September 2024, this will result in a 15 percent increase in capacity and a 16 million increase in population coverage. According to Vi, we are already seeing an improvement in the customer experience in a few regions where these rollouts have been finished.
The company is in the advanced stages of negotiations with both new and current lenders to secure Rs 10,000 crore in non-fund-based and Rs 25,000 crore in funded facilities for long-term capital expenditure.
The recent completion of an impartial third-party techno-economic appraisal of the company’s long-term projections was one of the process’s key milestones. According to Vi, the report has been delivered to all banks and financial organizations. It further stated that the banks will now move forward with their internal review and approval procedures in light of this report.
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