Vodafone Idea (Vi) has confirmed that it’s discussing the purchase of 5G network equipment with various vendors, including Ericsson from Sweden.
The announcement led to a nearly 12% increase in Vi’s shares on the BSE before closing 7.6% higher at Rs 15.11. Vi’s statement came in response to inquiries from the exchange following reports about discussions with Ericsson for 5G gear procurement.
Vi mentioned that it’s expanding its reach with the 5G rollout and is in talks with different network vendors, including Ericsson, for the supply of network gear.
Ericsson India MD Nitin Bansal had expressed optimism about securing some 4G/5G deals from Vi soon, particularly after the telco recently raised over Rs 20,000 crore through equity.
Reports suggest that Vi is accelerating discussions with Ericsson and Nokia to upgrade its 4G network, with purchase orders expected in June-July following the upcoming spectrum auction starting on June 6.
Having raised funds through a follow-on-public offer (FPO) and capital infusion, Vi is now in talks with banks to borrow up to Rs 25,000 crore along with additional non-fund-based facilities of Rs 10,000 crore. The targeted funding of Rs 50,000-55,000 crore will be utilized for capital expenditure over the next three years to enhance 4G coverage, capacity, and initiate 5G rollouts.
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