Debt burden The troubled telecom company Vodafone Idea (VIL) has awarded a contract worth Rs 30,000 crore to Nokia, Ericsson and Samsung for the supply of 4G and 5G network equipment. The company gave this information on Sunday. This contract is for three years. This is the largest deal awarded by any Indian telecom operator this year. The company had earlier announced a capital expenditure of $ 6.6 billion or Rs 55,000 crore in three years. This deal is the first step in this direction. The statement said that the target of this capital expenditure program is to increase the scope of 4G population from 1.03 billion to 1.2 billion, launch 5G service in major markets and expand capacity in line with the growth of data.
What will be the impact on the stock?
Stock market experts say that after the Supreme Court rejected the petition of telecom companies against AGR dues, Idea's stock will now depend on the performance of the company. The company is focusing on increasing its market share. This will reduce the company's losses and increase profits. This is good news for the company's stock. The stock may see a rise on the basis of this news.
The largest company in 2018 was
Vodafone Idea (VIL) was formed in August 2018 by the merger of Vodafone India and Idea Cellular. At that time, it had a customer base of 40.8 crores and was the largest telecom operator. According to data from telecom regulator TRAI, VIL now has 21.5 crore mobile service subscribers. The company recently raised Rs 24,000 crore through equity sale. VIL said it has completed a techno-economic assessment of the company's long-term projections by an independent third party. The report has been submitted to all banks and financial institutions, based on which the banks will now proceed with their internal assessment and approval processes.
Deliveries will begin in the next quarter
Supplies under these new long-term contracts will begin in the coming quarter. The statement said that expanding 4G service (coverage) to 1.2 billion Indians is the company's top priority. VIL CEO Akshay Mundra said that the company has started the investment cycle and this is the beginning of a new phase. He said, from now on VIL will make an efficient change to effectively participate in the growth opportunities of the industry. Nokia and Ericsson have been our partners since the beginning and this is another milestone in that continued partnership. He said, we are happy to start our new partnership with Samsung. We look forward to working closely with all our partners as we move forward in the 5G era.
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