Shares of Vodafone Idea (VIL) surged by 12% on Monday after the telecom giant announced major deals worth $3.6 billion (Rs 30,000 crore) with leading global telecom equipment providers Nokia, Ericsson, and Samsung. These deals are aimed at sourcing equipment to enhance Vodafone Idea’s 4G network and facilitate its entry into the 5G market, sparking optimism among investors.
On the Bombay Stock Exchange (BSE), Vodafone Idea’s shares rose by 11.73%, reaching Rs 11.71. The company’s market capitalization climbed to Rs 79,197 crore, with a significant trading volume of 585.63 lakh shares, leading to a turnover of Rs 66.42 crore. The surge reflects the market’s positive response to the company’s aggressive investment in expanding its network infrastructure.
The three-year equipment-sourcing deal marks a crucial step in Vodafone Idea’s transformative $6.6 billion (Rs 550 billion) capital expenditure plan. The plan aims to expand 4G coverage to 1.2 billion people from its current 1.03 billion while also positioning the company for a strong 5G rollout in key markets.
In a statement to the exchanges, Vodafone Idea emphasized that these partnerships will support its efforts to meet growing data demands and ensure a seamless network experience for customers. The deals with Nokia and Ericsson continue long-standing partnerships, while Samsung marks a new addition to the company’s network strategy.
Akshaya Moondra, CEO of Vodafone Idea, highlighted the importance of the investment, stating, “We are committed to investing in emerging network technologies to provide a best-in-class experience to our customers. We are on our journey of VIL 2.0, and from here on, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities.”
The deals come at a critical time for Vodafone Idea, which has been struggling with debt and intense competition from industry leaders like Reliance Jio and Bharti Airtel. With this significant investment, Vodafone Idea is positioning itself for a much-needed resurgence, with a focus on expanding its 4G and 5G network capabilities.
