Telecom company Vodafone Idea (VI) is in talks with European vendors Nokia and Ericsson to upgrade its 4G network. Economic Times has given information about this in one of its reports. According to the report, talks have gained momentum after the follow-on public offer i.e. FPO of ₹18,000 crore. The company may spend around ₹13,000 crore to expand 4G infrastructure. After the elections, the company can place purchasing order in June-July. This may also include 5G deal. However, the company has not yet given any official information about it. Vodafone-Idea trying to raise ₹25,000 crore Apart from raising funds through FPO, the telecom company is trying to raise ₹25,000 crore through debt. Apart from this, the company had already approved to raise ₹2,075 crore from the promoter unit through preferential share issue. Vodafone Idea will have to upgrade 4 networks before launching 5G According to the report, Vodafone Idea will have to upgrade 4 networks before launching 5G. An official told the Economic Times that Chinese vendors have a major stake in Vodafone Idea’s 4G network, but the Chinese firm is not allowed for the 5G network. Therefore, the telecom company will have to first upgrade the 4G network through European vendors and then plan for 5G rollout. Vodafone Idea has a debt of Rs 210,000 crore. Vodafone Idea is facing financial problems and has a debt of Rs 210,000 crore. Vodafone Idea wants to improve its service and basic infrastructure to compete with its competitors (Jio and Bharti Airtel). The company is currently far behind big competitors like Reliance Jio and Bharti Airtel. What is FPO? Follow on public offer (FPO) is a process by which a company that is already listed on the stock exchange issues new shares to investors or existing shareholders, usually promoters. If understood in simple language, companies listed in the stock market raise funds by issuing new shares in the secondary market.
