The Hindu Business Line : RCom places $200-m order with Huawei

Mumbai, July 12Keeping in line with its ongoing network expansion plan, telecom major Reliance Communications has placed an order worth over $200 million with Huawei Technologies Co Ltd. As part of the deal that will expire by the current fiscal end, Huawei would supply deployment services for CDMA & GSM base stations.

The technology from Huawei is expected to bring down Reliance Communications’ total cost of ownership by enabling a significantly faster and more cost-effective expansion of existing CDMA and GSM network services, said a news release. The China based Huawei is one of the world’s leading networking and telecommunications equipment suppliers.

Ms Sun Yafang, Chairlady of Huawei Technologies, was in the city on Thursday to finalise the deal with Mr Anil Ambani, Chairman of Reliance Communications. “The relationship with Huawei will help us maintain and strengthen our leadership position in India,” said Mr Ambani said today.

Network plans

Reliance has plans to enhance its digital network to over 20,000 towns and 6-lakh villages by 2007 end. On Wednesday, the company had awarded an IP based $400 million contract to Alcatel-Lucent to upgrade its CDMA and GSM network by adding additional mobile switching centres and base stations.

The Reliance Communications scrip was up by 4.04 per cent to close at Rs 561.5 on the BSE on Thursday.

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