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Vodafone Idea secures USD 3.6B network deal with Nokia, Ericsson and Samsung

Vodafone Idea secures a USD 3.6B deal with Nokia, Ericsson, and Samsung for network expansion, boosting 4G coverage, 5G rollout, and enhancing customer experience.

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Punam Singh
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Vodafone Idea

Vodafone Idea

Vodafone Idea (VI) has finalised a landmark deal worth USD 3.6 billion with global network giants Nokia, Ericsson, and Samsung to supply network equipment over the next three years. This investment forms the first phase of the company’s extensive  USD 6.6 billion capital expenditure (capex) plan, which aims to upgrade its infrastructure, expand 4G coverage, and launch 5G services.

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Expanding 4G and Rolling Out 5G

The primary objective of this investment is to expand VIL’s 4G coverage from 1.03 billion people to 1.2 billion. Additionally, VIL plans to roll out 5G in key markets to meet the growing demand for high-speed connectivity and data-driven services. These agreements allow the company to deploy the latest network technology and boost capacity to cater to an increasing number of connected devices.

Samsung, a new partner for Vodafone Idea, joins Nokia and Ericsson, both long-term collaborators. The advanced equipment from these companies will empower VIL to deliver better customer experiences, improve efficiency, and reduce operational costs. The partnership with these global leaders in network technology also enables VIL to implement modular rollout plans, optimising 4G and 5G services.

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Immediate Gains and Long-Term Plans

Even before this massive investment, Vodafone Idea had already initiated quick-win capex projects, deploying additional spectrum on existing sites and rolling out new sites. As a result, the company has seen a 15% boost in capacity and an increase in coverage by 16 million people by September 2024. These quick upgrades have resulted in improved customer experiences in regions where the rollouts have been completed.

Moving forward, Vodafone Idea is in advanced discussions with lenders to secure Rs. 350 billion in funding, with Rs. 250 billion for long-term capex and Rs. 100 billion in non-fund-based facilities. This funding is critical for the company’s continued growth and the execution of its long-term projections, which have undergone a thorough techno-economic evaluation.

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