2024-09-23 10:25:13
New Delhi: Cash-strapped and heavily indebted telecom company Vodafone Idea (Vi) has signed a $3.6 billion (about Rs 30,000 crore) deal with Nokia, Ericsson and Samsung. The deal has been done for the supply of network equipment over a period of three years. The company has planned a capex of $6.6 billion for three years. This deal is the first step in that direction. The company says that its capex target is to increase 4G coverage from 1.03 billion to 1.2 billion, launch 5G in major markets and expand capacity in line with data growth. The company said that it has continued to work with its existing long-term partners Nokia and Ericsson and has also added Samsung as a new partner. These contracts will help the company to immediately take advantage of the latest cutting-edge equipment to provide better customer experience. Supplies from the new deal will start in the coming quarter. The top priority for the company is to expand 4G coverage to 1.2 billion Indians. The company said that we are committed to investing in emerging network technologies to provide best-in-class experience to our customers.
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Setback from Supreme Court
The company said that we have kickstarted the investment cycle. Nokia and Ericsson have been our partners since our inception and this is another milestone in that ongoing partnership. We are delighted to begin our new partnership with Samsung. Akshay Mundra, CEO, Vodafone Idea Limited, said, ‘We look forward to working closely with all our partners as we enter the 5G era.’
Meanwhile, the Supreme Court this week dismissed several petitions by telecom companies, including Vodafone Idea, seeking recalculation of the companies’ AGR. VI owed the government Rs 2,03,430 crore as of March 31, 2024. The total dues include deferred spectrum payments of Rs 1,33,110 crore and AGR dues of Rs 70,320 crore. The company was hoping that the court would give it relief on the payment. The company’s shares fell 20 per cent on Thursday after the court’s decision.