Ericsson Signs $500 million deal with Airtel: The only vendor to manage 2 pan-India networks in the country


Swedish telecom gear producer Ericsson has stowed a three-year administrations contract worth up to $500 million (Rs 3,350 crore) from India’s leading telco Bharti Airtel for its 2G, 3G, 4G LTE networks over all 22 circles nation-wide.

This deal has made Ericsson the only vendor to manage two pan-India networks in the country. Under a seven-year full-scope services agreement Anil Ambani-drove Reliance Communications’ (RCOM) inked in December 2014 and worth $1 billion they are already delivering managed services for their Pan- India network. The latest contract comes as a big relief for the vendor, as in the recent quarters it was going tough and rough phase due to decrease in spending on network by Indian telecom players.

Under the settlement, Ericsson has reestablished/renewed its association with Airtel in 15 telecom circles where it was already giving managed services. It has now additionally won the arrangement to deal with Airtel’s systems in rest of their circles, which were earlier being overseen by Finnish apparatus producer Nokia.

According to the terms, Ericsson will accept accountability for field support, network operations, organize advancement and optimization for Airtel-possessed networks and manage more than 150,000 physical sites, alongside 150,000 coherent destinations nationwide.

One of the spokesperson also mentioned that “Ericsson is likely to take over from Nokia in new circles around December-January,”

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Madhurima Goyal, From ITvoir News Desk