Vodafone Idea invests $3.6 billion in network upgrades with Nokia and Ericsson

Vodafone Idea, an Indian cellular operator, has announced a significant investment of $3.6 billion to upgrade its network infrastructure through a partnership with Nokia, Ericsson, and Samsung. This investment is part of a broader three-year capital expenditure plan totaling $6.6 billion, aimed at enhancing 4G coverage and launching 5G services in key markets. The announcement was made in a filing with the National Stock Exchange, highlighting the company's commitment to improving its operational capabilities. The CEO of Vodafone Idea, Akshaya Moondra, emphasized the company's strategic shift towards a 'VIL 2.0' model, which aims to reverse the financial losses the company has faced since its formation in 2018. The operator has struggled to compete against larger rivals like Bharti Airtel and Reliance Jio, leading to a decline in market share and consistent quarterly losses. The new investment is expected to facilitate a turnaround by leveraging advanced technology and reducing operational costs through energy-efficient equipment. To finance this ambitious plan, Vodafone Idea has raised approximately $2.8 billion through an equity sale and acquired additional network frequencies worth $418 million. The company is also in discussions with lenders to secure further funding, indicating a proactive approach to stabilize its financial position. As of the first quarter, Vodafone Idea had 210 million subscribers, with a significant portion still using non-4G services, presenting an opportunity for growth as the company upgrades its network. This investment marks a critical step for Vodafone Idea as it seeks to regain competitiveness in the rapidly evolving telecommunications landscape in India. The arrival of new equipment is expected in the upcoming quarter, setting the stage for improved service offerings and potential market recovery.