Bharti Airtel awards network expansion contract to Ericsson

Bharti Airtel Ltd has announced that the Company has awarded Ericsson an estimated USD 2 billion expansion contract, including expansion of its GSM/EDGE network and providing capacity management. The expansion is in line with the Company's objective to offer world-class and cost effective telecom products and services to its customers through a state of the art, converged network across the country. The deal will allow the Company to expand its reach into rural areas thereby further consolidating its leadership position. This is one of Ericsson's largest deals to date.

Under the two-year supply and services contract, Ericsson will design, plan, deploy, optimize and manage the Company's GSM network across 15 circles in India as well as for its pan-India prepaid (IN) platform across 23 circles. In addition, Ericsson will also deliver pan-India Integrated Device Management Solutions, enabling usage of advanced data services by all mobile customers across retail and enterprise segments.

Manoj Kohli, President & CEO, of the Company says: "At Bharti, it has always been our endeavor to offer world-class products and services to our customers. Our partnership with Ericsson is testament to this belief as it allows us to focus on delivering a better customer experience everaging Ericsson's global expertise to enhance our networks."

"The state of the art network will further allow us to offer more innovative products and solutions in the areas of voice and data like community based charging, location based services and enterprise VPN services. Bharti and Ericsson is also looking at forming a focus group to work on energy optimization by way of introducing energy efficient equipments and alternate energy sources " He added.

The core network is based on Ericsson's layered architecture philosophy that will pave the way to an all-IP environment, and includes a common 2G/3G core based on Mobile Softswitch; a robust Mobile Packet Backbone Network (Mobile PBN) for data services; and a pan-India pre-paid platform using IN (Intelligent Network) technology to deliver innovative pre-paid services to users with the shortest time-to-market as well as to allow Bharti to charge differentially for both voice and data; and a state-of-the-art location-based services (LBS) solution that will pave the way for unique location based services and applications to be launched for the Indian consumer.

On the radio access side, the cornerstones for cost-efficient coverage including Ericsson's latest radio access portfolio with opex-saving solutions such as Main-Remote design, Flamingo Series Radio Base Station and the Expander solution - will be deployed as part of this contract, to allow rapid expansion into rural markets. The core and access solutions will be supported by a robust and scaleable network backbone for all transmission requirements through Ericsson's MINI-LINK transport portfolio, which also includes elements from Ericsson's recently acquired Marconi portfolio.

Ericsson has been a strategic partner of Bharti Airtel since 1995, and manages around 70 percent of its GSM/EDGE network in 15 circles in India. Ericsson's nationwide charging solution (IN) caters to Airtel customers across all the 23 circles of the Company.

Source : Equity Bulls

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