INDIA BUSINESS WORLD - AUGUST 2006
THE MONTH THAT WAS...

BHARTI, ERICSSON IN OUTSOURCING DEAL

BHARTI Airtel, the country's largest mobile operator, on Thursday announced yet another outsourcing deal, this time a $1-billion network expansion contract with Swedish equipment vendor Ericsson. The company will raise resources internally to fund the order.

The three-year service contract with Ericsson is towards design, planning, supply, installation, commissioning and upgradation of Airtel network in 15 telecom circles. The ownership of the networks built by Ericsson will be with Bharti, and the actual payment will be linked to utilisation of capacity and fulfilment of agreed quality of service parameters. This marks Bharti's third major outsourcing deal with Ericsson in as many years. Additionally, it emphasises the company's focus towards outsourcing of all operational activities, including customer services, to global majors.

“The tie-up will allow Airtel to channel resources to core areas while offering world-class mobile services by leveraging Ericsson's expertise in network management,” said Manoj Kohli, president, Bharti Airtel.