(Bloomberg) -- Vodafone Idea Ltd. has signed a $3.6 billion contract with companies including Nokia Oyj for the supply of equipment to the Indian phone carrier for a planned upgrade of its network.
Nokia, Ericsson AB and Samsung Electronics Co. will supply network gear over three years as Vodafone Idea seeks to upgrade its 4G services and introduce 5G in key areas, according to a statement to Indian stock exchanges. The deal marks the first step of the company’s three-year capex plan of as much as $6.6 billion, it said.
Ericsson and Nokia are existing vendors to the Indian company, while Samsung has been added as a new partner.
Vodafone Idea, which raised $2.2 billion via a share sale in April, will fund the contract with that money. It’s in advanced talks with lenders to secure 350 billion rupees ($4.2 billion) of loans and bank guarantees, according to the statement. The supply of equipment will begin in the coming quarter.
--With assistance from Pratik Parija.
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