Vodafone Idea India on Sunday inked a deal worth $3.6 billion (approximately Rs 30,066 crore) with mobile and network makers Nokia, Ericsson and Samsung, the company said in a statement to the exchanges. Equipment will be supplied during the year.
“The capital expenditure plan aims to expand 4G population coverage from 1.03 billion to 1.2 billion, launch 5G in key markets and expand capacity in line with data growth,” the company said.
Vodafone Idea, formed in 2018 from the merger of Britain’s Vodafone Group India unit and Aditya Birla Group’s Idea Cellular, has posted losses every quarter as it loses market share to larger rivals Bharti Airtel and Reliance Jio .
In early 2024, the company sold shares to institutional investors to raise funds through the country’s largest-ever follow-on public offering and is also in talks with lenders as part of its plan to raise about $5 billion (roughly Rs. 41,762 crore) part. Launch 5G network services, expand 4G coverage, and regain market share.
Vodafone Idea said supplies under the new contract will start arriving next quarter, adding that its priority remains expanding 4G coverage.
“Capex is currently funded by equity financing. For long-term capex, the company is in advanced discussions with existing and new lenders to lock in Rs 25,000 crore in financing and Rs 10,000 in non-funded funds” Akshaya, CEO Moondra said.
India’s Supreme Court on Thursday rejected a request by telecom companies including Vodafone Idea to recalculate the dues they owe the government, sending shares tumbling. Vodafone Idea shares have fallen more than 40% so far this quarter.
Analysts at ICRA estimate that Vodafone Idea and Bharti Airtel are owed 1 trillion rupees ($12 billion), including spectrum and license fees. They did not provide estimates from other companies.
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