Synopsis:
Vodafone Idea is strengthening ties with Indian vendors like Tejas, HFCL, and HCLTech to reduce costs and accelerate 4G/5G rollout, alongside a $3.6 billion deal with global suppliers for network expansion.
The shares of the telecom company, which specializes in providing pan-India voice and data telecommunication services, including 2G, 3G, and 4G/5G, jumped up to 7 percent in intraday trade. In this article, let’s explore the reason behind the rally.
With a market capitalization of 1,02,925.88 Crores on Thursday, the shares of Vodafone Idea Ltd rose upto 6.5 percent, reaching a high of Rs. 9.60 compared to its previous close of Rs. 9.01.
What Happened
Vodafone Idea Ltd, engaged in providing pan-India voice and data telecommunication services, including 2G, 3G, and 4G/5G, jumped up to 7 percent in the intraday trade, extending their winning streak to a third straight session following these reasons.
According to a Moneycontrol report, the telecom operator is strengthening its partnerships with Indian network equipment manufacturers such as Tejas Networks, HFCL, and HCLTech to reduce costs, accelerate network rollouts, and localise its 4G and 5G infrastructure. This marks a strategic shift toward adopting homegrown telecom technologies as part of the company’s ongoing turnaround plan.
Vodafone Idea has started testing 4G and 5G wireless equipment from Tejas Networks in one of its circles and may place commercial orders depending on the results. According to the report, a company official said, “Vodafone Idea aims to collaborate with more Indian vendors wherever possible to reduce costs and speed up time to market. We are currently trialling Tejas’ 4G and 5G equipment to assess its maturity and suitability. If the technology meets our requirements, we will be happy to deploy it.”
In addition to Tejas, Vi is deepening its partnerships with other domestic technology firms. HCLTech has been engaged to provide Self-Optimising Network (SON) technology, while HFCL has been awarded a contract to supply IP/MPLS routers for its 5G network. These Indian vendors will complement Vi’s existing multinational partners that are already active across several of its operational circles.
It is currently rolling out 4G and 5G equipment across 17 priority circles as part of its broader strategy to reduce customer churn and enhance network experience. To support this expansion, the company signed a $3.6 billion agreement in 2024 with Nokia, Ericsson, and Samsung to supply equipment over three years.
For FY26, Vi has set its full-year capital expenditure guidance at Rs. 7,500–8,000 crore, with around Rs. 5,000 crore already spent in the first half of the fiscal year.
Along with it, the update on the Vodafone Idea AGR Case, the Supreme Court on October 13 deferred the hearing of Vodafone Idea’s plea in the adjusted gross revenue (AGR) dues case to October 27. The debt-laden telecom firm has challenged the Department of Telecommunications’ (DoT) demand of Rs. 9,450 crores, seeking to quash additional AGR dues claimed for the period up to FY2016–17.
If Vodafone Idea wins the AGR case, it would significantly reduce its financial burden by cutting or waiving the hefty dues demanded by the government. This relief would improve their cash flow and balance sheet, boost investor confidence, and help stabilize their operations.
Financials & Others
The company’s revenue rose by 4.89 percent from Rs. 10,508 crore to Rs. 11,022 crore in Q1FY25-26. Meanwhile, the Net loss increased from Rs. 6,432 crore to Rs. 6,608 crore during the same period.
Vodafone Idea Limited is a partnership between the Aditya Birla Group and the Vodafone Group, and is one of India’s leading telecom service providers. The company offers pan-India voice and data services across 2G, 3G, and 4G platforms.
With a large spectrum portfolio supporting the growing demand for data and voice, Vodafone Idea is committed to delivering exceptional customer experiences and contributing to the vision of a truly Digital India by enabling millions of citizens to connect and build a better future.
The company is also developing infrastructure to introduce newer and smarter technologies, empowering both retail and enterprise customers to be future-ready through innovative offerings that are easily accessible via a robust digital ecosystem and extensive on-ground presence.
Written by Sridhar J
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