Vodafone Idea has finalized a deal worth $3.6 billion with global partners Nokia, Ericsson, and Samsung. The deal, which was announced on September 22, is aimed at supplying network equipment over a span of three years, thereby strengthening Vodafone Idea's footprint in the country. The deal is a crucial step in the rollout of Vodafone Idea's transformative three-year capex plan, which is valued at $6.6 billion.
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, said Akshaya Moondra, CEO, Vodafone Idea. The capex program is primarily 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.
This ambitious plan is set to revolutionize the telecom landscape, offering enhanced customer experience with the latest state-of-the-art equipment. We look forward to working closely with all our partners as we move into the 5G era, Moondra added, highlighting the company's commitment to leveraging the latest technology for its operations. The contracts will allow the telecom player to capitalize on the latest state-of-the-art equipment, offering an enhanced customer experience.
In addition to enhancing customer experience, the new equipment will also lead to efficiency gains in energy, thus lowering operating costs. The supplies against these new long-term awards will start in the coming quarter, marking a new chapter in Vodafone Idea's operations. The top priority for the company is to expand the 4G coverage to 1.2 billion Indians, the company stated, underlining its commitment to bridging the digital divide in the country.
This expansion is expected to result in a 15 per cent boost in capacity and an increase in population coverage by 16 million by September. Post the recent equity raise of Rs 240 billion and additional spectrum acquisition of Rs 35 billion in June 2024 auction, the company has also executed some quick win Capex, while simultaneously working on concluding these long-term contracts.
In a similar vein, the company is also in advanced stage of discussions with its existing and new lenders to tie up Rs 250 billion of funded and Rs 100 billion of non-fund-based facilities. This move is expected to further strengthen its financial position, enabling it to navigate the competitive telecom landscape with greater agility.
