Ericsson (NASDAQ: ERIC) has been selected by leading Indian operator Idea Cellular as the sole supplier of its GSM network in Mumbai, India. The parties have also entered a managed services partnership.
Under the four-year agreement, Ericsson will supply radio access, microwave transmission, and core network equipment, including Ericsson's Mobile Softswitch Solution. Ericsson will also be responsible for network deployment and integration, as well as managed services including network and field operations. Rollout is planned to begin shortly, with commercial launch is scheduled for May 2008.
The Mobile Softswitch Solution, which sets the stage for Idea Cellular to evolve towards an all-IP network, supports cost-effective network operations for mobile voice services. The future-proof evolution path towards all-IP networks ensures the smooth launch of next-generation multimedia services.
Ericsson will also provide a real-time charging system for traditional telecom services and new multimedia services. The solution is part of Ericsson's end-to-end Revenue Management offering, helping operators improve marketing capabilities, reduce costs and provide users with spending control.
Sanjeev Aga, Managing Director, Idea Cellular, says: "This move extends our long-running relationship with Ericsson and will provide us with a state-of-the-art network in Mumbai. It ensures that we are well-positioned for future network development and addresses increasing customer demand for mobile services in a sustainable and cost-efficient way."
Mats Granryd, Managing Director, Ericsson India, says: "This contract is yet another milestone in our strong relationship with Idea Cellular. We are honored by the confidence shown by them in selecting Ericsson as the preferred vendor for rolling out this prestigious network in Mumbai."
The deal marks Ericsson's first network win in Mumbai and completes its footprint in India's 23 telecom circles. (The country is divided into 23 telecom regions known as service areas, and operators require separate licenses to operate in each service areas.)
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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About Idea Cellular Limited
As India's leading GSM mobile services operator, Idea Cellular has licenses to operate in 13 telecom circles. With a subscriber base of more than 20 million, the company operates in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Haryana, UP-East, UP-West, Himachal Pradesh, Rajasthan and Kerala. Idea is part of the Aditya Birla Group. The Group has been judged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007."
About Ericsson's Managed Services Offering
Ericsson has the telecom industry's most comprehensive managed services offering. It ranges from designing, building, operating and day-to-day management of a customer's network, including end-user services and business support systems to hosting service applications and content, as well as providing network coverage and capacity on demand. As the undisputed leader in managed services, Ericsson has officially announced more than 100 managed services contracts since 2002 with operators worldwide. In all current managed services contracts, excluding hosting, Ericsson is managing networks that together serve more than 135 million subscribers worldwide.