Vodafone Idea Signs $3.6 Billion Deal with Nokia, Ericsson, and Samsung for Network Expansion
New Delhi, India – Vodafone Idea Limited has secured a deal worth USD 3.6 billion (Rs. 300 billion) with Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years. This agreement is part of the company’s three-year capital expenditure plan of USD 6.6 billion (Rs. 550 billion).
The investment will be used to expand Vodafone Idea’s 4G population coverage from 1.03 billion to 1.2 billion and to launch 5G services in key markets. The company aims to increase capacity to meet data growth demands.
“The company has retained its long-standing partners, Nokia and Ericsson, and has also brought on Samsung as a new partner,” the statement read. Vodafone Idea said that this contract will enable the company to leverage cutting-edge equipment to enhance customer experiences.
“Moreover, the insights and expertise gained by these vendors in the Indian market over the last two years will help the company implement a more flexible and modular rollout plan, customising services for advanced technologies like 4G and 5G. The new equipment will also bring energy efficiency benefits, thereby reducing operational costs,” the company added.
Supplies from these new long-term agreements will begin in the upcoming quarter. The company’s primary focus is to extend 4G coverage to 1.2 billion people across India.
Following a recent equity raise of Rs. 240 billion and an additional Rs. 35 billion spent on spectrum acquisition during the June 2024 auction, the company has already implemented several “quick win” capital expenditure projects. These quick wins have primarily involved deploying additional spectrum at existing sites and establishing new ones.
“This has led to a 15 percent increase in capacity and expanded population coverage by 16 million, which is expected to be achieved by the end of September 2024,” it added.
Akshaya Moondra, CEO of Vodafone Idea Limited, said, “We are committed to investing in emerging network technologies to provide a best-in-class experience for our customers. We have initiated the investment cycle and are on the path of VIL 2.0. From here, VIL will stage a smart turnaround, enabling us to effectively participate in the industry’s growth opportunities. Nokia and Ericsson have been our partners since the beginning, and this is yet another milestone in that long-standing relationship. We are also excited to start our new partnership with Samsung and look forward to collaborating with all our partners as we transition into the 5G era.”
The company also noted that customer experiences have improved in certain regions where these rollouts have been completed.
Doubts Revealed
Vodafone Idea -: Vodafone Idea is a big company in India that provides mobile phone and internet services to people.
Nokia -: Nokia is a company from Finland that makes phones and equipment for mobile networks.
Ericsson -: Ericsson is a company from Sweden that also makes equipment for mobile networks.
Samsung -: Samsung is a company from South Korea that makes many things like phones, TVs, and network equipment.
Network Expansion -: Network expansion means making the mobile and internet services better and available to more people.
4G -: 4G is a type of mobile internet that is faster than older types like 3G.
5G -: 5G is the newest and fastest type of mobile internet, even better than 4G.
Capital Expenditure -: Capital expenditure is money that a company spends to buy things that will help it grow, like new equipment.
Population Coverage -: Population coverage means how many people can use the mobile and internet services in a certain area.
Advanced Technologies -: Advanced technologies are new and better ways to do things, like faster internet and better phone calls.