Ericsson Reported to have Won $500 Million Indian Contract
Published on: 28th May 2009
Note -- this news article is more than a year old.
Ericsson is reported to have won a USD500 million network contract from India's greenfield operator, Unitech Wireless. The contract will cover the rollout of the network infrastructure in Bihar, Eastern and Western Uttar Pradesh, said a Unitech Wireless executive, who asked not to be named.
The contract will last for five years. Unitech Wireless has licenses to operate in all 22 telecom circles across the country.
The network operator has already awarded a USD150 million contract to Alcatel-Lucent covering Kerala and Orissa, along with a USD225 million contract to Huawei covering Karnataka, Andhra Pradesh and Tamil Nadu.
Norway's Telenor owns 60% of the Indian operator after paying USD1.2 billion for the stake.
A recent report from debt ratings agency, Fitch warned that the sizable capex requirements by Unitech Wireless to build its network will strain Telenor's cash flow generation over the next few years.
On the web: The Economic Times