Vodafone Idea (Vi) has signed a significant $3.6 billion deal with tech giants Nokia, Ericsson, and Samsung to expand its 4G network and launch its long-awaited 5G services across India. This three-year network equipment supply agreement is part of Vi’s broader $6.6 billion capital expenditure plan aimed at boosting coverage and network capacity to meet growing data demand.
The telecom company, India’s third-largest service provider, has been lagging behind competitors like Reliance Jio and Bharti Airtel, who have already made considerable progress in rolling out 5G across the country. With this new partnership, Vi aims to strengthen its 4G presence by increasing coverage from 1.03 billion to 1.2 billion people, while also introducing 5G in key regions.
Vodafone Idea has long-term relationships with Nokia and Ericsson, but Samsung has been newly brought on board for this expansion project. The deployment of advanced network infrastructure is expected to enhance customer experience and reduce operating costs through energy-efficient equipment. The first phase of equipment delivery will begin in the upcoming quarter, with a focus on rural and urban areas that lack sufficient 4G coverage.
Vi has been facing financial difficulties, owing the Indian government over ₹2 trillion in deferred spectrum payments and AGR (Adjusted Gross Revenue) liabilities. However, the recent Rs. 24,000 crore equity raise and additional spectrum acquisitions in mid-2024 have given the company a much-needed financial boost. Despite these challenges, Vi’s average revenue per user (ARPU) has seen an improvement, indicating growing customer engagement.
With this deal, Vodafone Idea hopes to regain its competitive edge in India’s highly contested telecom sector, where data consumption is soaring, and 5G adoption is rapidly expanding. The company’s priority remains expanding 4G coverage while preparing for the next wave of 5G services that are expected to revolutionize India’s digital infrastructure.
This initiative could potentially reverse the decline in Vi’s subscriber base, which has been affected by delays in 5G rollout and limited 4G coverage compared to its rivals(The New Indian Express)
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