Debt-Ridden Vodafone Idea Signs Worth $ 3.6 bn with Nokia, Ericsson & Samsung
Financially struggling Vodafone Idea has signed a deal worth $ 3.6 billion with Nokia, Ericsson, and Samsung to expand the 4 G networks and roll out 5G.
This step is the first step toward the three-year capex plan of $ 6.6 billion. The main focus of this plan is to expand the 4 G population coverage to 1.2 billion from the recent 1.03 billion. In addition to this, it also holds a vital role in the launch of 5G in the global market today.
This time Vodafone Idea has joined hands with new partner Samsung. Nokia and Ericsson are already long-term partners with the company.
The signed deal will now allow the company to swiftly capitalize latest modern equipment to offer a more improved customer experience. Consequently, this will lead to efficiency in energy and lower operating costs.
In 2018, the Indian arm of the United Kingdom’s Vodafone Group and Birla Group’s Idea Cellular merged but henceforth it is reporting a continuous downfall in every quarter. So, this new deal has been signed keeping in view to overcoming the burden that company is facing for the last few years.
Akshaya Moondra, the CEO of Vodafone Idea Limited announced “ We are committed to investing in emerging network technology 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 here, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities.
He also added that 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 working closely with all our partners as we move into the 5G era. Vodafone Idea was planning to invest in enhancing the 4 G networking for a very long time. However, due to the inefficiency of funding, it did not succeed.
Even though the competitors Bharti Airtel and Reliance Jio had made the entry before this. Moreover, in recent times, TCS has also teamed up with BSNL for a massive ₹15,000 crore project to deploy 4G services throughout the country. So, VIL has also joined the race with US dollar 360 crore in the race to enhance the 4 G networking along with the rollout of 5G.
