Vodafone Idea signs deal with Nokia, Ericsson, Samsung in an effort to position itself strongly in the Indian telecom segment by finalizing a $3.6 billion network equipment deal with Nokia, Ericsson, and Samsung. vodafone idea nokia, ericsson deal is part of its major $6.6 billion planned capital expenditure to expand 4G coverage and roll out the 5G service in key markets. Vodafone Idea has 200 million subscribers relying on its services.Vodafone Idea share gain 12% after recently announced deal . Shares of Vodafone Idea rose 11.73% to Rs 11.71 on BSE today. Market cap of the firm climbed to Rs 79,197 crore. Nokia is 4G equipment supplier to Vodafone Idea since 2019, , would continue existing cover and undertake new upgradations of infrastructures; its existing long-time partner Ericsson would dominate the constituents of VIL's new 4G ecosystem.
4G Expansion and 5G Rollout
The aggressive plan of Vodafone Idea is to increase its 4G population coverage from the existing 1.03 billion users to 1.2 billion in three years. The company is also getting ready to launch 5G and the milestone markets are being prepared, both in urban and rural areas. The deal related to the equipment will solve the issue of rising data consumption strongly on the increase due to increased digital activities. "We will continue to invest in the emerging technologies of the network to provide a best-in-class experience to our customer," Moondra said. The company is on a path to a smart turnaround under its "VIL 2.0" strategy to position it well to capture growth opportunities in the industry.
vodafone share price
The mega deal comes at a time when Vodafone Idea is struggling financially. The telco has $28 billion in net debt, besides AGR liabilities of $8.5 billion on which 80% of its debt is in the form of interest and penalty. Vodafone Idea has started discussing it with new lenders, public sector non-banking financial companies or NBFCs and also about vodafone idea share price. This $3.6 billion network deal signed with Nokia, Ericsson, and Samsung stands as a watershed moment for Vodafone Idea. Those technology leaders being part of the telco's ecosystem, it is now prepared to take the next step of expansion and focus on further growth of its 4G presence, and get ready to welcome 5G.
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