Indian carrier Vodafone Idea (Vi) has signed a $3.6 billion deal with network vendors Nokia, Ericsson, and Samsung.

The contract will see the trio of vendors supply Vi with network equipment for the next three years.

Vodafone Idea
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According to Vi, the deal is part of the company's first phase of its three-year capex program of $6.6bn.

The program sets out to enhance Vi's 4G population coverage from 1.03bn to 1.2bn, plus launching 5G in key markets and capacity expansion in line with data growth.

Vi has added Samsung as a new vendor partner, the company added. Both Nokia and Ericsson are long-term network partners.

The carrier said that the contracts will support the company's rollout plan for 4G and 5G, while the new equipment will also lead to efficiency gains in energy, driving lower operating costs.

“We are committed to invest[ing] in emerging network technologies to provide a best-in-class experience to our customers," said Akshaya Moondra, CEO, Vodafone Idea Limited.

"We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. We are pleased to start our new partnership with Samsung. We look forward to working closely with all our partners as we move into the 5G era.”

In June, Vi issued close to $300 million worth of shares to Ericsson and Nokia as part of the company's strategy to clear its dues. It means that Nokia owns a 1.5 percent stake in Vi, while Ericsson owns 0.9 percent of the telco.

At present, Vi has yet to launch 5G services in India, falling behind Reliance Jio and Bharti Airtel, both of which launched the service in October 2022.

Moondra said in January that the carrier is about "six to seven months away" from launching the service. However, a launch has yet to take place.

Vi has previously declined to comment to DCD when asked about its proposed 5G rollout plans.

The company, which was created in 2018 following the merger of Vodafone India and Idea Cellular, has been struggling to pay its dues with its vendor partners after it was saved from the brink of collapse by the Indian government in 2022, which acquired a 35.8 percent stake in the company.

The financial issues have meant that Vi has fallen behind on payments to its tower and equipment vendors, owing 135 billion rupees ($1.6bn).