Vi rings in $3.6 bn gear deal with global vendors

Mega pact comes a day ahead of telco's meet with investors, analysts

- SUBHAYAN CHAKRABORTY

Just a day ahead of the hurriedly called Vodafone Idea (Vi) meeting meant to soothe the nerves of investors amid the company's sliding stock price and a negative narrative around it, the telco announced a $3.6-billion (₹30,000 crore) deal with global equipment makers Nokia, Ericsson and Samsung for the supply of network gear over a three-year period.

The mega deal announcement on Sunday may have been a balancing act before the meeting with investors and analysts scheduled for Monday, analysts said. The Vi stock hit a 52-week low last week when the Supreme Court rejected the curative petition of telcos seeking a review of the 2019 ruling of the court on payment of adjusted gross revenue (AGR).

While there's lack of clarity on how the latest Vi deal would be funded against the backdrop of its ₹2.09-trillion debt including deferred spectrum payment to be made to the government, the firm said the transaction was part of its total capital expenditure target of $6.6 billion (₹55,000 crore) over the next three years.

Vi's network equipment deal would help the telecom provider expand its 4G coverage as a priority, the company said in a statement. The deal, the first of this magnitude in several years for Vi, will also enable the telco to begin 5G rollout in key circles, two years after rivals Reliance Jio and Bharti Airtel did that.