Ericsson bags $100 Mn GSM equipment deal from Idea Cellular

Ericsson bags $100 Mn GSM equipment deal from Idea Cellular

By SiliconIndia   |   Tuesday, 04 December 2007, 12:33 Hrs
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New Delhi: Swedish network major Ericsson on Friday announced that it has bagged a four-year deal worth $100 million to supply GSM equipment to Idea Cellular for its Mumbai circle and also to maintain the telco's network in the metro city. Currently, Idea Cellular does not offer cellular services in Mumbai.

The telco, which offers mobile services in 11 circles, has obtained a license to begin operations in Mumbai and is awaiting the allotment of 2G spectrum for the same. "Rollout is planned to begin shortly, with commercial launch rescheduled for May 2008," Ericsson said in a statement. "Under the four-year agreement, Ericsson will supply radio access, microwave transmission and core network equipment, including Ericsson's mobile softswitch solution. The company will also be responsible for network deployment and integration, as well as managed services including network and field operations," the statement added.

This also marks Ericsson's second deal with Idea Cellular this year, a three-year contract in February to expand its GSM networks in the Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and Himachal Pradesh telecom circles being the first. With regard to the Mumbai deal, Ericsson has also added that it would provide a real-time charging system for traditional telecom services and new multimedia services.

Commenting on the deal, Sanjeev Aga, Managing Director, Idea Cellular, said, "This move extends our long-running relationship with Ericsson and will provide us with a state-of-the-art network in Mumbai. It ensures that we are well-positioned for future network development and addresses increasing customer demand for mobile services in a sustainable and cost-efficient way."

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