The Hindu Business Line : Bharti awards network expansion deal to Nokia

Teaming up: Mr Manoj Kohli, President and CEO, Bharti Airtel, exchanging documents with Mr Simon Beresford Wylie, CEO, Nokia Siemens Networks, after signing an MoU in the Capital on Tuesday.

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New Delhi, July 3 India’s largest private telecom operator Bharti Airtel has awarded a $900-million contract to Finnish equipment maker Nokia Siemens Networks to expand Airtel’s fixed line business, mobile services and Intelligent Network platform.

In the first multi-platform network contract of its kind to be awarded in India, Nokia Siemens Networks will expand Airtel’s GSM network in 8 circles, its national long distance and international long distance network with 1.8 million next generation network (NGN) ports – the largest-ever NGN contract in the country – and its international calling card prepaid service capacity by 4.5 million news users.

The GSM and NGN expansions are planned over two years and the international calling cards expansion over three years.

In talks with Ericsson

Bharti is also in talks with Ericsson for a similar expansion contract for the other 15 circles managed by the Swedish equipment manufacturer.

The memorandum of understanding was signed between Mr Manoj Kohli, President and CEO of Bharti Airtel, and Mr. Simon Beresford Wylie, CEO of Nokia Siemens Networks.

“Bharti Airtel is undertaking a massive expansion and integration exercise across its mobile and fixed networks to significantly augment its service delivery capacity. Today’s comprehensive network expansion contract is a reflection of this vision,” said Mr Kohli.

The two-year GSM expansion will cover Mumbai, Maharashtra & Goa, Gujarat, Madhya Pradesh & Chhattisgarh, Bihar & Jharkhand, Orissa, Kolkata and West Bengal. Mr Kohli’s said that the deal for calling cards would help Airtel expand its call home service, which is currently available in the US, to 10 more countries to cater to the NRIs.

Shares of Bharti Airtel rose as much as 5 per cent today, and closed at Rs 866.60 on the BSE.

Vying for bigger pie

This contract further heats up the competition between Nokia-Siemens and Ericsson for a larger share of the Indian telecom gear market. Nokia Siemens until now has bagged contracts to set up network in 12 circles from Hutch, 8 circles from Bharti Airtel, 6 circles from Idea Cellular, 1 from Aircel and a network supporting about 7 million subscribers for state-owned BSNL.

Ericsson on the other hand is managing 2 circles for Hutch, 15 circles for Bharti Airtel, 5 circles for Idea cellular, 7 circles for Aircel and BSNL’s network for nearly 7 million users.

BSNL contract

Meanwhile, one of the biggest contracts floated by BSNL is still stuck. The contract valued at $4.5 billion has run into rough weather with the Ministry of Communication insisting that the deal value should be brought below $100 per line while Ericsson, the lowest bidder, has refused to budge from its quoted price of $107. The delay is causing BSNL huge losses even as the private operators are quickly ramping up their network.