Anil Ambani controlled Reliance Communications is awarding a $1-billion contract to Sweden-based Ericsson for operating and managing the company’s wireline and wireless networks for northern and western India.
Under the contract, Ericsson will manage the day-to-day operations across wireline and wireless networks and take over responsibility for field maintenance, network operations and operational planning of RCom 2G, CDMA and 3G mobile networks for eight years. This deal will facilitate moving 5,000 employees from RCom to Ericsson.
Last month, RCom gave Alcatel-Lucent an eight-year contract valued at more than $1 billion to manage its mobile and fixed networks in east and south India. Under this deal, 4,000 employees or 15% of the company’s workforce are to move to Alcatel. Ericsson will also work closely with RCom to identify opportunities to introduce new services and expand its existing businesses to help realise the full potential of its network.
?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,? Gurdeep Singh, CEO, wireless business, RCom said. Post the deal, RCom will be able to free up resources ?to focus on user experience, as well as improving innovation power, agility and speed across the specified geographies.?
RCom has a debt of R37,360 crore as on December, accounting for about 10% of Indian telecom sector?s cumulative debt.
RCom shares closed flat at R75 on Monday on the BSE. They have shed about 20% of their value in the last one year.
