Business Daily from THE HINDU group of publications
Saturday, Dec 01, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Dec 01, 2007 ePaper | Mobile/PDA Version |
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Info-Tech
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Telecommunications Corporate - New Business Ericsson wins $100-m Idea Cellular contract
Deal could be a precursor to Idea Cellular getting spectrum from the Government to commence services in the Circle. Ericsson will supply radio access, microwave transmission, and core network equipment. Will also be responsible for network deployment and integration, as well as managed services. Our Bureau New Delhi, Nov. 30 Swedish equipment maker Ericsson has won a contract to supply and manage Idea Cellular’s GSM network in Mumbai. The agreement with the Aditya Birla Group company is estimated to fetch revenues of $100 million to Ericsson over a four-year period. The deal could be a precursor to Idea Cellular getting spectrum from the Government to commence services in the Circle. The company has been awaiting allocation of spectrum for nearly a year after it received the licence for Mumbai in 2006. Under the agreement, Ericsson will supply radio access, microwave transmission, and core network equipment, including Ericsson’s mobile soft switch solution. The company will also be responsible for network deployment and integration, as well as managed services including network and field operations. Rollout is planned to begin shortly, with commercial launch rescheduled for May 2008. 2nd major dealThis is the second major deal between the two companies. Earlier Idea had given a $300-million contract to Ericsson for expanding its GSM-based cellular network across five circles over a three-year period. Mr Sanjeev Aga, Managing Director, Idea Cellular, said: “This move extends our long-running relationship with Ericsson and will provide us with a latest network in Mumbai. It ensures that we are well-positioned for future network development and addresses increasing customer demand for mobile services in a sustainable and cost-efficient way.” Mr Mats Granryd, Managing Director, Ericsson India, said: “This contract is yet another milestone in our strong relationship with Idea Cellular. We are honoured by the confidence shown by them in selecting Ericsson as the preferred vendor for rolling out this prestigious network in Mumbai.” The deal announced on Friday will further enhance Ericsson’s position in the competitive Indian telecom gear market. It has already bagged some significant projects from BSNL and Bharti Airtel this year. However, the contract from Idea is Ericsson’s first network win in Mumbai and completes its footprint in India’s 23 telecom circles. More Stories on : Telecommunications | New Business
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