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This is an archive article published on November 29, 2011

Ericsson to manage 70% of Airtel networks

Bharti Airtel has signed a five-year deal with Ericsson in which the Swedish telecom equipment maker will manage 70 per cent of Airtel’s network in India

Bharti Airtel has signed a five-year deal with Ericsson in which the Swedish telecom equipment maker will manage 70 per cent of Airtel’s network in India.

The largest Indian mobile provider by subscribers will extend an existing contract to cover 15 service areas,Ericsson said on Monday.

Ericsson will maintain and operate Airtel’s networks in Delhi,Jammu and Kashmir,Haryana,Punjab,Himachal Pradesh,UP,Rajasthan,Assam and the North East,Karnataka,Andhra Pradesh,Tamil Nadu,Chennai and Kerala. It will also manage Airtel’s prepaid customers.

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Both companies declined comment on the value of the deal. Airtel said the agreement was part of its efforts to upgrade its infrastructure as India continued to see “multi-fold growth” in the use of the internet,mobile applications and smartphones.

Sanjay Kapoor,who heads Airtel’s Indian business,said,“This unique multi-technology managed services partnership with Ericsson will help us focus on creating a compelling service proposition for our customers,as we look to ramp up our market access for next generation services on 3G and 4G.”

Ericsson has built Airtel’s 3G networks in the majority of Indian service circles.

Fred Jejdling,head of Ericsson India,said,“The rapid increase in customer numbers,and the network complexities due to multiple technology overlays defines the need for a renewed focus on differentiated user experience,” he said.

The two companies have a long relationship.

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Earlier this year,they entered a similar agreement for Airtel’s African operations. The deal was meant to help the provider focus on launching new services and applications.

“The extension of our fifteen years association with Ericsson is testimony to the strength of the relationship as well as the success of the model,” Kapoor had said.

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