Ericsson, BSNL in Talks Over Extending India GSM Deal

STOCKHOLM (Dow Jones)--Ericsson said Friday it is in talks with India's state-run Bharat Sanchar Nigam Ltd. (BSNL) regarding the share of a contract to lay 22.75 million GSM lines in India.

Mats Granryd, managing director of Ericsson India told Dow Jones Newswires Friday that BSNL has contacted Ericsson and has asked whether it could handle the remaining portion of the deal

Ericsson has already won a $1.3 billion contract to lay 60%, or 13.125 million, of a total of 22.75 million global system for mobile communication lines. The remaining 40% was to be given to Nokia Siemens Networks if it could match the $90 a line bid made by Ericsson. Nokia Siemens has yet to agree to the deal.

Granryd said Ericsson is interested in getting the remaining part of the contract and is analyzing the possibility. At 1201 GMT, Ericsson shares traded 1.5% higher at SEK16.10, outperforming a broader higher Stockholm market.

-By Adam Ewing, Dow Jones Newswires; +46 8 545 130 95; adam.ewing@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 30th November 2007