Vi Awards Mega Contracts Worth Rs 30,000 Cr For Supply Of 4G, 5G Network Equipment (photo on X@ViCustomerCare)

Vodafone Idea (Vi) has reached a mega Rs 300 billion deal with Nokia, Ericsson, and Samsung for the supply of network apparatus, including 4G and 5G networks, over a period of three years, as per a statement from the debt-ridden telecommunication firm on Sunday. The company stated that it has awarded the contracts for the expansion of its network.

The statement noted that the deal was aimed at expanding the 4G population coverage while launching 5G in key markets. “Vodafone Idea has concluded a mega, about USD 3.6 billion (around ₹300 billion), deal with Nokia, Ericsson, and Samsung for supply of network equipment over a period of three years. The capex program is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets, and capacity expansion in line with data growth,” reads the statement.

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The supplies for the new long-term awards will be starting in the coming quarter. The deal, according to the report, is the company’s first step towards the roll-out of the three-year capex (capital expenditure) plan of about USD 6.6 billion (Rs 55,000 crore) it declared earlier.

Notably, the telecom provider has a total of Rs 4,650 crore in debt as of June 2024, and the company needs money to repay its dues and invest in 5G infrastructure to keep pace with rivals Reliance Jio and Bharti Airtel. Raising the tariffs has come at the cost of losing subscribers, which has already hit the provider since 2021, with Reliance Jio offering the cheapest plans.

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Reliance has now the largest number of subscribers, with 475 million people, followed by Bharti Airtel with 387 million and then Vodafone Idea with 215 million subscribers.