Ericsson will provide Bharti with complete network infrastructure, including locally produced Ericsson core and access network elements. Based on Bharti's capacity requirements, Ericsson provides design, deployment, integration, optimization and management of Bharti's network in the regions, called circles of Assam, North East.
Earlier in February 2004, Ericsson had announced similar agreements for 10 existing and 3 new circles of Bharti, the scope included the company's existing circles of Delhi, Haryana, Punjab, Himachal Pradesh, UP (west), Andhra Pradesh, Tamil Nadu, Chennai, Karnataka & Kerala and the three new circles of Rajasthan, UP (East) & Jammu & Kashmir. At an overall level, the contract also includes an expanded managed services scope of site maintenance for all the 15 circles covered by Ericsson.
The addition of new circles kickstarts Bharti's initiatives to provide cellular connectivity in the rural areas of India. Ericsson will complete this project in the stipulated time frame of three years. In 2004 Bharti and Ericsson announced a managed services and equipment contract worth USD 400 million. Under the agreements Ericsson combines its world leadership in infrastructure and services to deliver and manage available network capacity when and where Bharti needs it.
Bharti's decision to expand the contract with Ericsson is proof of Ericsson's strengths as a managed services partner, delivering and managing network capacity according to operator' requirements. By partnering with Ericsson, Bharti is free to focus on its core business.
"With Bharti's expansion in new circles, our latest agreement with Ericsson, one of the world's top suppliers of telecom solutions, is yet another major step forward in aligning the interest of the operator and the vendor partner. The initative will substantially strengthen Bharti's leadership position as a provider of high-tech telecom services to its customers. In addition, it would also give more economies of scale and would further improve our cash flows," said Mr. Akhil Gupta, Joint Managing Director, Bharti Tele-Ventures Ltd.
"We are honored to be selected once again as Bharti's managed services partner," said Jan Campbell, Managing Director, Ericsson India. "With our long-term close cooperation with Bharti and our leading technology and solutions, we are dedicated to supporting Bharti in building a mobile network for the future, ensuring a clear competitive edge in the market."
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
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