Nokia and Ericsson have refused to offer 5G equipment on credit to Vodafone Idea (Vi), further burdening the financially troubled company. Vi currently owes the two vendors around 3,500-4,000 crore. Despite making some payments, Vi is still far from fully settling its outstanding dues.
This refusal from Nokia and Ericsson deals a significant blow to Vi’s plans of launching 5G services in the second half of 2023. The company now faces the challenge of securing funds to place an order for the necessary 5G equipment.
Furthermore, the unwillingness of Nokia and Ericsson to extend credit highlights the financial difficulties plaguing the Indian telecom sector. The industry has been severely impacted by the emergence of Reliance Jio, which introduced free voice and data services, resulting in a considerable decline in revenue for established telecom operators, including Vi.
Vi faces a significant setback as it is unable to acquire 5G equipment on credit from Nokia and Ericsson. Without access to credit, the company’s path to launching 5G services becomes uncertain. This situation could hinder the progress of 5G rollout in India, pushing the country even further behind its global counterparts.
