Vodafone Idea (Vi) has proposed to settle its remaining legacy operational dues of approximately ₹1,500 crore to Finland’s Nokia through cash payments in multiple installments by December 2025, according to sources familiar with the matter. However, Nokia has yet to accept this proposal.

Recently, Vi allotted 1,027 million equity shares to Nokia through a preferential issue, covering about half of its total dues of ₹3,040 crore. Following this allotment, Nokia Solutions and Networks India now holds a 1.47% stake in Vi, as per Vi's shareholding update dated July 19.

Nokia's second-quarter earnings report will reflect the impact of this equity share allotment in its third-quarter results. Both Nokia and Vi did not respond to inquiries as of the latest update.

Despite ongoing payment delays, Vi’s management remains optimistic that operational creditors like Nokia will continue their support. This is due to the critical nature of Vi's planned expansion of 4G networks and the rollout of 5G services, which are significant for European vendors such as Nokia and Ericsson. These vendors have faced revenue declines as India’s major telecom operators, Reliance Jio and Bharti Airtel, have scaled back their network capital expenditures following their 5G rollouts.

Vi’s Chief Financial Officer, Murthy GVAS, recently assured analysts that the company’s vendor negotiations would not be adversely affected by payment issues. Vi is in discussions with Nokia, Ericsson, and Samsung for equipment needed for its network expansions.

The Vodafone Idea joint venture, which includes the UK’s Vodafone Plc and the Aditya Birla Group, has recently secured around ₹23,000 crore in equity funding. It is seeking an additional ₹23,000-25,000 crore through term loans from an SBI-led banking consortium and aims to arrange an extra ₹10,000 crore through non-fund-based facilities.