Reliance Communications Monday said it has outsourced operations and
management of its network in northern and western India to Ericsson in
an USD 1 billion agreement spread over eight years.
The contract would
cover one lakh kilometres of fiber and mobile infrastructure in 11
telecom circles of RCom, across North and West of India including Delhi
and Mumbai, a joint statement by the two companies.
The eight-year agreement is valued at USD 1 billion, it said adding 5,000 employees of RCom will join Ericsson in this regard.
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
RCom's Chief Executive Officer for Wireless Business, Gurdeep Singh said.
per the contract, Ericsson will manage the day to day operations across
wireline and wireless networks and will take over responsibility for
field maintenance, network operations and operational planning of RCom
2G, CDMA and 3G mobile networks, it added.
The partnership will
allow RCom to free up resources to focus on user experience, as well as
improving innovation power and speed across the specified geographies,
the statement said.
"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," Ericsson's Executive Vice President and Head of
Business Unit Global Services Magnus Mandersson said.
will be responsible for improving network performance and ultimately
service quality, with the goal of increasing customer satisfaction and
retention, the statement said.
"This is one of the first times
that wireless and wireline enterprise network is being outsourced to
deliver world-class service and performance assurance," RCom's CEO for
Global and Enterprise Business Punit Garg said.
infrastructure covers 24,000 towns and 6 lakh villages in India to which
it offers converged services including voice, data and video, it said.
the agreement, Ericsson will also work closely with RCom to identify
opportunities to introduce new services and expand its existing
businesses to help realise full potential of its network.