The contract includes network planning, implementation and project management, logistics, materials and system integration for the base station sites.
NEW DELHI: Leading mobile phone operator Bharti Airtel on Tuesday signed a memorandum of understanding (MoU) with Nokia-Siemens for a $900-million, three-year deal for end-to-end network expansion.
The deal would cover the global system for mobile communications (GSM) expansion of Bharti Airtel across eight circles, and the deployment of 1.8 million next generation network ports to augment Airtel’s national and international long-distance services over two years.
The deal would also include the expansion of Airtel’s pre-paid calling card service to tap new international markets over three years. While Airtel international cards already operate in the US, 10 more countries would offer the service by March 2008, Bharti Airtel president and CEO Manoj Kohli said.
The $900-million deal is being termed as one of the biggest GSM expansion contracts in India. But, Bharti has had a long association with Nokia. In October 2006, it had signed a three-year network expansion contract with Nokia for the same eight circles - Mumbai, Maharashtra, Gujarat, Bihar, Orissa, Kolkata, West Bengal and Madhya Pradesh - for $400 million.
The current deal is in addition to last year’s expansion agreement. Even before last year’s deal, Bharti was in another pact with Nokia for $400 million for managing the network in these eight circles.
“Nokia Siemens Networks has the experience and expertise in delivering integrated solutions and services and will enable Bharti Airtel to tap new market opportunities driven by convergence, optimise network performance and costs and continue to grow market share,” said Simon Beresford Wylie, CEO, Nokia Siemens Networks.
The Bharti group, which had started the trend of outsourcing in the telecom sector in India, is also in a $1-billion deal with Swedish firm Ericsson for expansion of networks in the remaining 15 circles in the country.
When asked whether a new deal between Bharti and Ericsson was in the pipeline for extending the contract between the two in the 15 circles that the Swedish major is working in, Kohli said, “Our discussions with Ericsson (on this issue) are on-going. We have nothing more to say at this point.” Interestingly, 3G mobile services are not covered by the network expansion deal between Bharti and Nokia-Siemens.
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