Vodafone Idea Secures $3.6 Billion Deal With Global Telecom Giants for Network Upgrade

Vodafone Idea Limited (VIL) has secured a $3.6 billion (approx. Rs 30,000 crore) deal with global telecom equipment suppliers Nokia, Ericsson, and Samsung, according to an exchange filing on Sept. 22.

The deal will enable Vodafone Idea to significantly upgrade its network infrastructure, as part of a broader three-year capital expenditure (capex) plan valued at $6.6 billion (approx. Rs 55,000 crore). This partnership focuses on expanding VIL’s 4G coverage from 1.03 billion to 1.2 billion people and launching 5G services in key markets to meet growing data demand.

While Nokia and Ericsson have been long-term partners of Vodafone Idea, Samsung is a new entrant, contributing to the company's ambitious rollout.

"This partnership will help us swiftly leverage cutting-edge technology to offer our customers an enhanced experience. As we embark on VIL 2.0, we aim for a smart turnaround, ready to capitalize on industry growth opportunities," said Vodafone Idea CEO Akshaya Moondra.

The new equipment is also expected to boost energy efficiency, reducing operating costs. Initial deployments are set to begin in the next quarter, with the expansion of 4G coverage as the top priority.

Following a recent Rs 24,000 crore equity raise and a Rs 3,500 crore spectrum acquisition during the June 2024 auction, VIL has already executed some quick-win capex projects. These initiatives, such as adding more spectrum to existing sites and deploying new ones, have increased the company’s capacity by 15%, extending coverage to 16 million additional users by the end of September 2024.

For its long-term capex plans, Vodafone Idea is in advanced discussions with both existing and new lenders to secure Rs 25,000 crore in funded facilities and Rs 10,000 crore in non-fund-based facilities.

A recent techno-economic evaluation of the company's long-term projections by an independent third party has been submitted to banks and financial institutions. The banks are now progressing with their internal evaluations and approval processes based on this report.

The company recently faced a setback after Supreme Court rejected the curative petition to look at the calculations of the AGR dues.