Vodafone Idea (Vi) has taken a significant leap forward in its ambitious plans for network expansion by finalizing a monumental deal worth approximately ₹30,000 crore (around USD $3.6 billion) with industry giants Nokia, Ericsson, and Samsung. This three-year agreement marks a critical step in Vi’s comprehensive capital expenditure (capex) strategy, which aims to enhance network capabilities and customer experience.
Regarding this, Akshaya Moondra, CEO, Vodafone Idea Limited, said, “We are committed to invest in emerging network technologies to provide a best-in-class experience to our customers. We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. 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.”
As part of a larger ₹55,000 crore (USD $6.6 billion) investment plan, the new deal will focus on expanding 4G coverage from 1.03 billion to 1.2 billion users and initiating the rollout of 5G services in key markets. With the increasing demand for data, Vi’s strategy includes not only expanding its network capacity but also improving efficiency and reducing operational costs.
The partnership with Nokia and Ericsson continues, while Samsung joins as a new ally, reflecting Vi’s commitment to leveraging the latest technology. The integration of the network equipment from these providers is expected to provide a more flexible and modular rollout plan, allowing for tailored solutions that cater to both 4G and 5G technologies.
To finance this initiative, Vodafone Idea has already raised ₹24,000 crore through equity and secured additional spectrum worth ₹3,500 crore. The company has also initiated several quick-win projects, which have already led to a 15% boost in network capacity and an increase in coverage by 16 million users, projected to be completed by September 2024.
Looking ahead, Vi is engaged in advanced discussions with financial institutions to secure an additional ₹25,000 crore in funded facilities, alongside ₹10,000 crore in non-fund-based facilities. An independent evaluation of the company’s long-term projections has been completed and is currently under review by banks, paving the way for sustained growth.
