Mon Sep 23 00:50:54 UTC 2024: ## Vodafone Idea Invests $3.6 Billion in Network Upgrades, Aims to Catch Up in 5G Race

**New Delhi, India:** Debt-ridden telecom operator Vodafone Idea (Vi) has announced a significant $3.6 billion deal with Nokia, Ericsson and Samsung for network equipment, marking the first step in its ambitious three-year $6.6 billion capex plan. The investment aims to expand 4G coverage, launch 5G services in key markets, and boost capacity to accommodate growing data demands.

The deal comes at a critical time for Vi, which is facing substantial financial pressure. The Supreme Court recently rejected the company’s appeal against the government’s calculation of Adjusted Gross Revenue (AGR) dues, leaving Vi with over Rs 2 lakh crore in outstanding payments.

While competitors Reliance Jio and Bharti Airtel are nearing pan-India 5G coverage, Vi remains the only private telco yet to launch the next generation technology. The new equipment, which will begin arriving in the coming quarter, will allow Vi to implement a more flexible and modular rollout plan, and to “embark on a more flexible and modular rollout plan by customizing the services for all advanced technologies (4G & 5G),” the company stated.

The capex plan is being funded through a recent equity raise and ongoing discussions with existing and new lenders for Rs 250 billion in funded and Rs 100 billion in non-fund-based facilities.

This investment represents a crucial step for Vi to catch up in the 5G race and improve its competitive position. The upgrade will also lead to operational efficiency gains, reducing energy consumption and operating costs.

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