NOKIANEWS - News of the Nokia

Nokia will not give more credit to India's Vodafone Idea

02. 07. 2023 Sunday / By: Robert Denes / Industrial / Exact time: BST / Print this page

N okia and Ericcson have decided not to lend 5G equipment to Vodafone Idea, India's third-largest operator, according to media reports, due to Vodafone Idea not yet settling its past debts and its financial situation being uncertain. While Vodafone Idea has made some partial payments to vendors, it is nowhere near accounting for between INR 35 billion (US$426.5 million) and INR 40 billion (US$487.45 million). This makes the suppliers' reluctance to initiate new lines of credit understandable.

However, this puts Vodafone Idea in a tricky position as it has to meet some minimum roll-out obligations before September 2023 to retain spectrum licenses under government rules. The Indian carrier risks losing customers if it fails to launch 5G. Vodafone Idea's debt at the end of March 2023 was around INR 2 trillion ($24.36 billion). More importantly, his efforts to attract investors over the past three years have not yielded results.

Media reports suggest it is in advanced talks with several private equity funds to raise INR 200 million ($2.4 billion), but it remains unclear when that might happen. With no money and no credit from Nokia and Ericsson, Vodafone Idea is unlikely to be able to launch 5G services anytime soon. It risks continuing to lose subscribers and market share to rivals already deploying 5G. While all this was happening, China's ZTE was able to supply Vodafone Idea with 2 billion Indian rupees ($24.36 million) worth of optical transmissions, despite government restrictions on Chinese suppliers.

It remains to be seen whether the deal between ZTE and Vodafone Idea will open up the possibility for the carrier to acquire 5G devices from the Chinese manufacturer. If that happens, it would allow Vodafone Idea to get 5G equipment cheaper and possibly with better payment terms – and ZTE is gearing up for a comeback in India.

Via Link




Canning Town, Barking Road
London E13 8EQ
United Kingdom