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Ericsson Wins $1 Billion Indian Managed Services Contract

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India's Reliance Communications has awarded Ericsson a USD1 billion managed services agreement for the next eight years. The contract is to operate and manage the wireline and wireless networks in the Northern and Western states of India.

As part of the deal, some 5,000 RCom employees will be joining Ericsson.

This deal follows on from the announcement last month that Alcatel-Lucent had picked up a similar contract covering Eastern and Southern India for the same duration and value.

In total, RCom has committed to USD2 billion worth of contracts over 8 years with the two vendors.

Commenting on the agreement, Gurdeep Singh, Chief Executive Officer - Wireless Business, Reliance Communications said, "We are happy to announce our partnership with Ericsson to manage our wireline and wireless network enabling us to provide a higher level of customer experience in terms of network and services. Given the complexity of network increasing with platforms, technologies and application offerings, we are banking on the experience, innovation and technical expertise of Ericsson to improve the productivity of our network and ensure that it delivers to its full potential."

This agreement will be driven by defined service level agreement governance. Ericsson will be responsible for improving network performance and ultimately service quality. Ericsson will also work closely with Reliance Communications to identify opportunities to introduce new services and expand its existing businesses.

Reliance Communications' infrastructure covers 24,000 towns and 600,000 villages in India.

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Tags: reliance communications  ericsson  managed services  India