Vodafone Idea Awards Major Contracts to Nokia, Ericsson, and Samsung

Vodafone Idea's shares surged up to 14% following the announcement of awarding contracts worth Rs 30,000 crore to Nokia, Ericsson, and Samsung. These contracts signify the company's largest deal this year and kickstart a three-year capital expenditure plan. VIL aims to expand its 4G and 5G network coverage as part of this initiative.

Shares of Vodafone Idea soared on Monday, climbing 14 per cent, after the telecom firm awarded contracts valued at around Rs 30,000 crore to industry giants Nokia, Ericsson, and Samsung for the provision of 4G and 5G network equipment over the next three years.

At the Bombay Stock Exchange (BSE), the stock surged 11.73 per cent to Rs 11.71, while on the National Stock Exchange (NSE), it rose 14 per cent to Rs 11.94. This development marks the largest deal struck by an Indian telecom operator this year.

The contracts kickstart Vodafone Idea's extensive three-year capital expenditure plan amounting to approximately USD 6.6 billion or Rs 55,000 crore. According to the company's Sunday statement, the focus is on expanding 4G population coverage, initiating 5G services in key markets, and increasing network capacity to meet growing data demand.

The first supplies under these new long-term agreements are scheduled to commence in the upcoming quarter. Vodafone Idea's CEO, Akshaya Moondra, emphasized that the primary goal is to extend 4G coverage to 1.2 billion people. He added, "This marks the beginning of our investment cycle for VIL 2.0. We're optimistic about smartly navigating the burgeoning industry opportunities ahead."

Moondra further noted that Nokia and Ericsson, long-standing partners, will continue their collaboration, while a new partnership with Samsung begins. "We're excited to work closely with all our partners as we embark on the 5G journey," he said.

(With inputs from agencies.)