Airtel extends services contract with Ericsson by another two years

BARCELONA: India's largest telecom operator Bharti Airtel has extended its managed services contract with Swedish telecom equipment manufacturer Ericsson by another two years in a deal estimated at over $200 million.
Under the multi-vendor, multi-technology agreement, Ericsson will manage 2G, 3G, 4G/LTE and intelligent networks as well as wi-fi technologies for Airtel across 15 circles, the companies said in a joint statement on Monday. The companies did not give the financial details of the deal, but experts said the transaction was for between $200 million and $250 million.

The two entities had first signed the contract in 2011.

"We believe that our expertise in the managed services domain will enable Airtel subscribers to enjoy reliable services - and an enhanced digital experience across all generations of mobile technologies," Chris Houghton, head of region, Ericsson India, said in the statement.

The company will provide the full suite of managed services via centralised, state-of-the-art global network operation centres, as well as field services via a distributed network of service centres, Ericsson said.

Ericsson has bagged another contract - a three-year deal with AV Birla-controlled Idea Cellular for rolling out 3G services in Delhi circle and one to modernise its 2G network. Idea Cellular will use airwaves in the 900 MHz band it had won in the spectrum auctions in 2014 to roll out 3G services.

Traditionally used for providing high coverage for voice services, this band is increasingly gaining currency as an efficient frequency for providing 3G services. ET had reported the Idea-Ericsson deal in late November, and pegged the value at $250 to $300 million.