Ericsson seals $1bn outsourcing deal in India

Reliance Communications hires Ericsson for full suite of managed services.
Ericsson's Magnus Mandersson said that the deal will help boost Reliance Communications' efficiency and could pave the way for new services.
Ericsson's Magnus Mandersson said that the deal will help boost Reliance Communications' efficiency and could pave the way for new services.

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Indian telecom operator, Reliance Communications, has signed a $1 billion, eight-year managed services agreement with Ericsson to operate and manage its wireline and wireless networks in the Northern and Western states of India.

Ericsson will manage the day to day operations across Reliance Communications' wireline and wireless networks and will take over responsibility for field maintenance, network operations and operational planning of its 2G, CDMA and 3G mobile networks.

The deal will allow Reliance Communications to focus on user experience, as well as improving innovation power, agility and speed across the specified geographies.

Ericsson will be responsible for improving network performance and ultimately service quality, with the goal of increasing customer satisfaction and retention. Ericsson will also work closely with Reliance Communications to identify opportunities to introduce new services and expand its existing businesses to help realise the full potential of its network.

Magnus Mandersson, executive vice president and head of global services, Ericsson, said; "The increasing uptake of new technologies requires an increased focus on customer experience management in the [...] Indian telecom market. With this partnership Reliance will increase focus on their core business and innovation. We are pleased to welcome more than 5,000 employees who will join us from Reliance Communications and support our long term commitment to India's ICT market."

Gurdeep Singh, CEO, wireless business, Reliance Communications, said: "Given the complexity of network increasing with platforms, technologies and application offerings, we are banking on the experience, innovation and technical expertise of Ericsson to improve the productivity of our network and ensure that it delivers to its full potential. We are confident that they will exceed the expectations of our customers through optimization of resources and provide us cost effective solutions."

Reliance Communications' infrastructure covers 24,000 towns and 600,000 villages in India to which it offers converged services including voice, data and video.

To read about Ericsson's Q4 2012 results, click here.

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