Vodafone Idea (IDEA) Status Update summary

Major network equipment order and CapEx plan

• Signed INR 300 billion, three-year network equipment deals with Nokia, Ericsson, and Samsung, supporting a transformative CapEx plan of INR 500–550 billion for 4G expansion, 5G rollout, and capacity growth.

• CapEx aims to expand 4G coverage from 1.03 billion to 1.2 billion people and launch 5G services, with improved cash from operations expected as a result.

• Quick Win CapEx and recent spectrum acquisition increased data capacity by 15% and 4G coverage by 16 million people since March 2024.

• Equipment deliveries are expected to start in the second half of the next quarter, with full-scale deployment to follow.

• 4G sites to increase from 170,000 to 215,000–220,000 to achieve coverage targets; 5G rollout planned in all 17 priority circles.

Funding, cash flow, and liabilities

• Raised INR 240 billion equity between March and July, including INR 24.6 billion from Nokia and Ericsson; closing cash balance of INR 180 billion as of June 30, 2024.

• Advanced discussions for INR 250 billion funded and INR 100 billion non-fund based bank facilities, with funding expected to conclude in 7–8 weeks.

• CapEx for three years to be funded by INR 200 billion equity, INR 250 billion bank funding, and INR 100 billion non-fund based facility (mainly LC for vendor credit).

• Annual government dues from FY2027 projected at INR 430 billion, with INR 170 billion potentially convertible to equity and INR 260 billion as regular installments.

• Bank guarantee requirements are under discussion with the government, with expectations of a resolution soon.

AGR liability and government engagement

• Supreme Court dismissed the curative petition on AGR, but long-term business plan remains unaffected as it did not factor in any relief.

• Engaging with the government for remedies on AGR calculation errors, with strong belief in the merits of the case and expectation of a fair solution.

• Government remains committed to supporting a three-player private market and is the largest stakeholder with 23% shareholding.