Vodafone Idea (Vi) has struck a major USD 3.6 billion agreement with leading telecom equipment manufacturers Nokia, Ericsson, and Samsung, aimed at bolstering its network infrastructure over the next three years. This strategic partnership allows Vi to enhance its customer experience by leveraging state-of-the-art technology, with a focus on expanding 4G coverage to 1.2 billion Indians.
The company has chosen to continue its longstanding relationships with Nokia and Ericsson while also welcoming Samsung as a new partner. The collaboration is expected to facilitate a more flexible and modular rollout plan, utilising insights gained by the vendors from the Indian market over the past two years. Additionally, the new equipment is anticipated to improve energy efficiency, thereby lowering operating costs for Vi.
“We are committed to invest in emerging network technologies to provide a best-in-class experience to our customers. We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to work closely with all our partners as we move into the 5G era,” Akshaya Moondra, CEO, Vodafone Idea Limited.
Despite this positive development, Vodafone Idea is grappling with significant financial pressures. The Supreme Court recently rejected the company's plea for a re-evaluation of its Adjusted Gross Revenue (AGR) obligations. As of March 31, 2024, Vi's total outstanding dues to the government stand at Rs 2,03,430 crore, which includes Rs 1,33,110 crore in deferred spectrum payments and Rs 70,320 crore related to AGR liabilities. The company had hoped for relief from the court regarding the AGR component, but the decision adds to its ongoing challenges.
