This deal is an expansion of the $1 billion deal signed between the two companies on 11 February 2013 under which Ericsson agreed to manage R-Com’s wireline and wireless networks in 11 circles across north and west India. Photo: Hemant Mishra/Mint
This deal is an expansion of the $1 billion deal signed between the two companies on 11 February 2013 under which Ericsson agreed to manage R-Com’s wireline and wireless networks in 11 circles across north and west India. Photo: Hemant Mishra/Mint

R-Com signs 7-year pan-India network deal with Ericcson

Ericsson will also take over the field maintenance, network operations and operational planning of R-Com's 2G, CDMA and 3G mobile networks

Mumbai: Reliance Communications Ltd (R-Com) has signed a seven-year managed services agreement with global telecom equipment maker Ericsson to operate and manage its wireline and wireless networks across India.

“This is the first pan-Indian managed services deal for Ericsson and will help us consolidate our managed services leadership in India," said Magnus Mandersson, executive vice-president and head of business unit global services, Ericsson.

As part of the agreement, Ericsson will also take over responsibility for the field maintenance, network operations and operational planning of R-Com’s 2G, CDMA and 3G mobile networks.

This deal is an expansion of the $1 billion deal signed between the two companies on 11 February 2013 under which Ericsson agreed to manage R-Com’s wireline and wireless networks in 11 circles across north and west India. Under the new deal, Ericsson will manage R-Com’s networks pan-India, across its 22 circles of operation, using its centralized network operations centre.

Ericsson said it will also work closely with Reliance Communications to identify opportunities to introduce new services and expand its existing business.

“Given the complexity of networks and the growing performance expectations from customers, we are banking on the experience, innovation and technical expertise of Ericsson to improve the productivity of our network and ensure customer satisfaction and retention by delivering superior network performance and service quality at optimized costs," said Suresh Rangachar, head of commercial business, R-Com.

Shares of R-Com ended up 1.28% at 102.50, while the benchmark Sensex ended down 0.37% at 28,458.10 points.

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