Home > Business Development & Sales, Technology & Telecom > Alcatel-Lucent gets $1 billion Reliance Communications contract

Alcatel-Lucent gets $1 billion Reliance Communications contract

January 24, 2013 Leave a comment Go to comments

Indian company outsources management of fixed and mobile networks to vendor, including transfer of thousands of staff.

Telecommunications-equipment maker Alcatel-Lucent Wednesday said it received a $1 billion contract to manage Reliance Communications Ltd.’s telecommunications networks for eight years in eastern and southern India.

The contract comes at a time when equipment companies such as Alcatel-Lucent are facing a major challenge in India, as local telecom operators have slowed down investment.

India’s telecom market is one of the largest in the world, with the number of telecom subscribers second only to China’s. But local telecom operators are facing regulatory uncertainty and, for about a year, a shrinkage in subscriber additions.

Click here to find out more!Mumbai-based Reliance Communications, part of Anil Ambani-controlled Reliance Group, is India’s second-largest mobile phone companies with about 130 million subscribers.

Reliance Communications will outsource network management for both its wireless and fixed-line operations to Alcatel-Lucent, the companies said in a joint statement.

As part of the deal, about 4,000 employees will be shifted to Alcatel-Lucent from Reliance Communications, Gurdeep Singh, chief executive of Reliance Communications’ wireless business, told reporters in Mumbai.

Alcatel-Lucent India Managing Director Munish Seth said the deal is one of the local unit’s “largest and most strategic contracts” to date.

Currently, Reliance Communications’ wireless networks are managed by its equally owned joint venture with Alcatel-Lucent. The term of the joint venture, which was formed in 2008, will end in June.

Reliance Communications said it will make a separate announcement on managing its networks in the western and northern regions.

Reliance Communications’ rivals Bharti Airtel Ltd. and the local unit of Vodafone Group PLC also outsource network-management operations.

Originally posted at: http://www.totaltele.com/view.aspx?ID=478802&mail=932

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