Vodafone Idea (Vi) remains confident that its operational creditors, including Nokia, Ericsson, and tower vendor Indus, will continue to support the company despite delays in settling their dues. Vi expects its upcoming expansion into 4G and 5G networks to generate new business opportunities for these vendors.
Support from Key Operational Creditors
Vi’s CFO, Murthy GVAS, expressed optimism during discussions with global brokerage J P Morgan. He highlighted that equipment vendors view Vi as a significant growth opportunity post-5G, which makes their ongoing support likely. Additionally, Vi has issued preference shares to partially settle outstanding payments, further strengthening its relationships with these vendors.
Regarding tower vendor Indus, which has deployed single-tenant towers for LTE coverage, Vi offers profitable second tenancy opportunities and additional revenues through tower loading, ensuring favourable trading terms for both parties.
Future Plans
Vi plans to invest Rs 55,000 crore over the next three years to enhance its 4G coverage and roll out 5G networks in key markets. This strategic move is expected to stimulate business growth for its network and tower vendors, especially with competitors like Reliance Jio and Bharti Airtel already completing their nationwide 5G deployments.
Despite challenges, including a substantial backlog of dues owed to Indus, Vi’s recent financial initiatives aim to strengthen its partnerships and support its operational capabilities in the evolving telecom landscape.
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