Bharti Airtel & Nokia Siemens Networks sign MOU for a US$900 Mn end-to-end network expansion

Bharti Airtel Ltd has announced that the Company & Nokia Siemens Networks on July 03, 2007 strengthened their partnership further by signing a Memorandum of Understanding for a USD 900 Mn. (approx.) expansion contract across Airtel's mobile, fixed and Intelligent Network platforms. 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 eight 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.

The Memorandum of Understanding was signed between Mr. Manoj Kohli, President and CEO of the Company and Mr. Simon Beresford Wylie, CEO of Nokia Siemens Networks.

Commenting on the partnership, Mr. Manoj Kohli said, "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. Nokia Siemens Networks with its industry leading product portfolio and strong services capabilities is the strategic partner for Bharti Airtel to deliver on its vision of world class telecom services to its customers."

"We are honored to be awarded this first of its kind end to end network expansion contract by Bharti Airtel. Nokia Siemens Networks has been a strong partner in Bharti Airtel's growth and this contract establishes us as the leading integrated partner across their networks," said Simon Beresford-Wylie. "Nokia Siemens Networks has the experience and expertise in delivering integrated solutions and services and will enable Bharti Airtel to tap new market opportunities driven by convergence, optimize network performance and costs and continue to grow market share," he added

The two year GSM expansion will cover the eight existing circles of Mumbai, Maharashtra & Goa, Gujarat, Madhya Pradesh & Chattisgarh, Bihar & Jharkhand, Orissa, Kolkata and West Bengal where Nokia Siemens Networks already provides equipment and Managed Services. The expansion will enable Airtel to rapidly expand its geographical footprint to rural India and increase its overall network capacity.

The contract includes network planning, implementation and project management, handling of local logistics and materials as well as system integration for the base station sites.

Nokia Siemens Networks has one of the world's largest services networks with more than 20,000 dedicated professionals and outstanding execution capability. The network will be continued to be supported by the multitechnology, multivendor NetAct(TM) network and service management system. Nokia Siemens Networks will deploy the latest state of art GSM equipment such as Flexi Edge and Ultrasite BTS, BSC3i, 3GPP-based mobile softswitching solution including 3G capable MSC Servers and Media Gateways, and transmission network including PDH & SDH.

For the two year Fixed Network expansion, Nokia Siemens Networks will deploy 1.8 million Next Generation Networks ports across Airtel's National Long Distance and International Long Distance. The largest NGN expansion exercise in the country will allow Airtel to consolidate its position as a leading fixed line operator covering Class 4 - Long Distance National and International Switches. Nokia Siemens Networks will deploy its complete IP trunking solution with SURPASS hiE 9200 softswitches, SURPASS hiG 1200 media gateways and SURPASS hiR 200 media servers. For optimized support of international traffic, some of the components will be deployed in other countries.

The three year International Calling Cards services expansion will see Airtel more than quadruple its capacity and adequately address its calling card business expansion to tap more international markets. The calling card prepaid service will be supported by Nokia Siemens Networks' flexible IN@vantage platform for intelligent services. It also allows Bharti to increase network traffic and related revenues by addressing specific market segments and user expectations with dedicated communication solutions.

Both Nokia and Siemens have been associated with building Airtel's mobile and fixed networks. The previous major deal for GSM expansion that was signed last year between Nokia and Bharti was valued at $ 400m.

Source : Equity Bulls

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