Vodafone Idea signs a $3.6 billion big contract with companies such as Nokia to expand its market share in the Indian telecommunications market.

In the Indian telecommunications market, the leading operator Vodafone Idea has signed a $3.6 billion contract with companies including Nokia to provide equipment for a major network upgrade as part of its plan to gain more market share in the increasingly competitive Indian telecom market. According to a statement from the Indian stock exchange, Nokia, Ericsson, and Samsung Electronics will provide network infrastructure equipment over a period of three years as Vodafone Idea seeks to upgrade its 4G services and introduce 5G services in key markets. The company said that this deal represents the first step in its three-year capital expenditure plan, which amounts to up to $6.6 billion. Ericsson and Nokia are existing suppliers to the Indian telecom giant, while Samsung Electronics has been added as a new partner. Specifically, Vodafone Idea plans to use the equipment from these global suppliers to expand the coverage of its 4G services network infrastructure from covering around 1.03 billion people in the Indian market to approximately 1.2 billion people, and gradually introduce 5G services in key core markets in India. Additionally, these new devices will improve energy conversion efficiency, reducing operational costs, and it is expected that supplies will begin to be delivered in the coming quarters, driving the expansion of Vodafone Idea's 4G services and the deployment of a new 5G network. In a statement, Vodafone Idea said that its main goal is to enhance 4G connectivity services throughout India, while preparing to introduce new 5G technology services in some key markets. This is part of the company's efforts to overcome financial difficulties, gain a larger market share in the vast Indian telecommunications market, and is an important part of its three-year $6.6 billion capital investment plan. Vodafone Idea raised around $2.2 billion through an equity sale in April and will use some of this money to support the contract. According to the latest statement, the company is in deep negotiations with some lenders to secure a loan and bank guarantees of up to 350 billion Indian Rupees (approximately $4.2 billion). The supply of network infrastructure equipment is expected to begin in the next quarter. Vodafone Idea is a merger between Vodafone India, a subsidiary of British telecommunications giant Vodafone, and Idea Cellular. The merger was aimed at addressing the fierce competition in the Indian telecom market, particularly due to the rise of Reliance Jio, which has intensified competition in the Indian telecom industry. The newly merged company was renamed Vodafone Idea Limited and has become one of the major telecommunications service operators in the Indian market. Vodafone, Aditya Birla Group (the parent company of Idea Cellular), and other investors collectively own shares in Vodafone Idea.