Mon Sep 23 06:10:54 UTC 2024: ## Vodafone Idea Signs $3.6 Billion Deal for Network Expansion, Shares Surge 10%

**Mumbai, India** – Vodafone Idea Limited (Vi) saw its shares jump by 10% on the Bombay Stock Exchange (BSE) on Monday, reaching a day’s high of Rs 11.94. The surge was triggered by the company’s announcement on Sunday of a $3.6 billion (Rs 30,000 crore) deal with Nokia, Ericsson, and Samsung for telecom equipment over the next three years.

This major investment marks a crucial step for Vi in its bid to strengthen its position against dominant rivals Reliance Jio and Bharti Airtel, while also aiming to stem user losses. The deal forms the first phase of Vi’s three-year capital expenditure (capex) plan, totaling approximately $6.6 billion (Rs 55,000 crore).

The capex program will focus on expanding Vi’s 4G network coverage from 1.03 billion to 1.2 billion users, launching 5G services in key markets, and boosting capacity to meet growing data demands. While the company has retained its long-term partners, Nokia and Ericsson, it has also brought Samsung on board as a new supplier.

Vi recently raised Rs 24,000 crore through a share sale, bolstering its financial position. Reports indicate that approximately 40% of the new equipment contracts will be awarded to Ericsson and Nokia, with the remaining 20% going to Samsung. Supplies are expected to commence in the upcoming quarter, prioritizing the expansion of 4G coverage.

The company’s stock has been under pressure recently, particularly after the Supreme Court’s dismissal of Vi’s plea in the Adjusted Gross Revenue (AGR) case. This ruling resulted in a financial burden of Rs 58,000 crore on Vi, which has now risen to Rs 70,320 crore including interest as of the end of FY24.

Despite the recent challenges, Vi’s latest move to secure vital network equipment and its ongoing commitment to investing in its infrastructure have instilled a sense of optimism among investors. The company’s focus on 4G and 5G expansion aims to strengthen its position in the highly competitive Indian telecom market.

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