Vodafone Idea‘s stock surged 7 percent following a statement that it had reached a $3.6 billion infrastructure deal with global technology firms – Nokia, Ericsson, and Samsung among them – to upgrade network infrastructure, extend the reach of its 4G footprints, and roll out services in 5G networks. According to an announcement, this marks one part of a commitment by Vodafone Idea to investing $6.6 billion into network capacity and population coverage over three years. Currently, this agreement has given more confidence to investors as the company is in negotiation with the lenders about more funds for schemes in the future.
Vodafone Idea would feel it can’t survive without this deal, given the cutthroat competition in the telecommunication space. The company wants to enhance services, which it apparently can do with 5G technology relevant for a growing digital landmass. Tying up with tech leaders would mean that Vodafone Idea could bet their game on long-term growth and better connectivity of Indians. The deal is where the telecom operator has been tending to its problems both in the competitive Indian market and financial book.
This has increased the share price, which is evidence that the deal has been welcomed well by the market and the investors are also very hopeful about the future of Vodafone Idea as well as the prospects of this company in the Indian telecom industry. That goes hand in hand with other broader objectives of enhancing customer experience and growing the subscriber base.