On Sunday, September 22, 2024, the debt laden telecom Vodafone Idea (VI) said it has inked Rs 30,000 Crore pact with industry stalwarts like Samsung, Nokia and Ericsson for procurement of telecom equipment for smooth rollout of 5G services and expansion of 4G services to customers. The latest deal is part of the Rs 55,000 Crore capital expenditure (capex) plan announced earlier to expand its network in the country. The deal entails the three global telecom partners of VI to supply network equipment over a period of three years.
According to a filing by the telecom on website of Bombay Stock Exchange (BSE), 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.”
The company said that it intends to utilize the deal to expand 4G services to 120 crore population from current 103 crore. VI will also capitalize on the deal to rollout 5G services in key market.
From where did Rs 1 Lakh Crore debt ridden VI brought Rs 30,000 Crore for the contract?
The telecom said that it had raised Rs 30,000 crore for the contract through equity sale made earlier. The cash strapped telecom also mentioned that it is focused on providing better services to its subscribers. It added that it successfully utilised funds raised earlier to deploy more spectrum in areas under its service. As a result, its services improved and it was able to provide better customer experience in such key markets.
