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Our Bureau

3 year project to expand IDEA's network in 5 circles

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New Delhi Feb. 27 Aditya Birla Group-promoted IDEA Cellular has awarded a three-year contract to Swedish equipment major Ericsson for expanding its GSM-based cellular network across five circles. Though the two companies were tight lipped about the deal size, industry sources estimated it to be in excess of $300 million.

Expansion

Ericsson will expand IDEA Cellular's network in Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and Himachal Pradesh over the next three years. The contract also envisages upgrading IDEA's existing network to make it capable for offering third generation services. Ericsson will provide radio access, microwave transmission and next-generation, mobile softswitch network architecture, till November 2009. Ericsson and IDEA have also signed agreement to deploy environment friendly bio-fuels for powering the company's cellular base stations.

The deal will further enhance Ericsson's position in the competitive Indian telecom gear market.

Finnish major Nokia has also bagged some major contracts from Bharti and Hutch. With operators such as Bharti, BSNL and Reliance planning major expansion, contracts worth $10 billion are up for grabs this year.

Commenting on the agreement with Ericsson, Mr Sanjeev Aga, Managing Director, IDEA Cellular, said, "We are pleased to be working with Ericsson to expand our GSM network. The expansion prepares us well for the switch to a 3G-ready network when the time is right."

IDEA Cellular has licences to operate in 12 telecom circles and has a customer base of more than 12 million. The company is in the process of getting its shares listed on the bourses through an initial public offering.

Mr Mats Granryd, Managing Director, Ericsson India, said, "IDEA's expansion in the five circles will include remote rural areas, which present unique challenges. We have been partners with IDEA since it started operations in India, and we are happy to be taking this partnership to a new level of commitment."

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Ericsson bags mobile gear contract from IDEA

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