Ericsson Wins US$1.3 Billion Indian GSM Contract

Ericsson has finally been awarded the long delayed turnkey contract valued at US$1.3 billion to supply GSM and WCDMA/HSPA equipment and related telecom services to Bharat Sanchar Nigam Ltd (BSNL), the largest telecom operator in India.

Under the agreement, Ericsson will be responsible for the expansion and upgrade of BSNL's existing GSM network and introduction of WCDMA/HSPA functionality. This upgrade marks an important step in BSNL's network evolution and sets the stage for end-customer access to a range of innovative telecommunications.

Ericsson will supply a GSM and WCDMA/HSPA radio access network, transmission equipment and a complete GSM/WCDMA common core network - including the Ericsson Mobile Softswitch Solution, service-aware Packet Core, IMS and a multiservice IP Packet Backbone Network. Ericsson will also deliver telecom-related services, such as network design, deployment and systems integration.

Deliveries will start in October 2007, with the first phase of the project set to be completed in 12 months.

The contract has been mired in controversy after Motorola was eliminated from the early bidding rounds and tried to take legal action to have the decision reversed. In July, BSNL staff held a strike to demand that the contract was awarded by the government controlled company.

The order is for 13.1 million GSM lines, and a second order for 9.6 million GSM lines is expected to be awarded to Nokia Siemens Networks shortly.

Ericsson says that it has supplied 49 out of 96 operational GSM mobile networks in India, and has a market share of about 40 percent in terms of connected subscribers.

Posted to the site on 7th September 2007