STOCKHOLM, SWEDEN -- (Marketwire) -- 02/11/13 --
* Covers 100,000 km of fiber and mobile infrastructure in 11 telecomcircles, across North and West of India, including Delhi and Mumbai
* Will lead to productive integration of 5,000 employees by moving themto Ericsson - providing them global opportunities
* Integrated management to deliver world class customer experience using global expertise and bringing in operational efficiencies and cost optimization
Reliance Communications Limited, India's fully integratedtelecommunicationsservice provider, today signed an eight-year full-scope managed servicesagreement with Ericsson (NASDAQ: ERIC) for USD 1 billion to operate andmanagethe wireline and wireless networks in the Northern and Western states ofIndia.
As per the contract, Ericsson will manage the day to day operations acrosswireline and wireless networks and will take over responsibility for fieldmaintenance, network operations and operational planning of RelianceCommunications 2G, CDMA and 3G mobile networks. This agreement is aimed tomeetthe fast evolving customer demand for communications applications andservicesin one of the world's most dynamic telecom markets.
Reliance Communications will benefit from Ericsson's proven world-classprocesses, methods and tools and the partnership will allow RelianceCommunications to free up resources to focus on user experience, as well asimproving innovation power, agility and speed across the specifiedgeographies.Reliance Communications' infrastructure covers 24,000 towns and 600,000villagesin India to which it offers converged services including voice, data andvideo.
This is one of the first converged wireless and wireline managed servicescontract in India, and one of only a handful in the world. Ericsson willstreamline Reliance Communications' operations by bringing all aspects offiber,tower operations, wireless networks and wireline access networks toRelianceCommunications' wireless and global enterprise business, acrossdifferentiatedproduct lines. Ericsson will also drive a modernization of the tools,processesand best practices that are applied across the business resulting inoperationalefficiencies by managing cost through consolidation.
Commenting on the agreement, Gurdeep Singh, Chief Executive Officer -WirelessBusiness, Reliance Communications said, "We are happy to announce ourpartnership with Ericsson to manage our wireline and wireless networkenablingus to provide a higher level of customer experience in terms of network andservices. 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 productivityofour network and ensure that it delivers to its full potential. We areconfidentthat they will exceed the expectations of our customers throughoptimization ofresources and provide us cost effective solutions."
Magnus Mandersson, Executive Vice President and Head of Business UnitGlobalServices, Ericsson, said; "We are excited to partner with RelianceCommunications for this strategic multi-technology managed services deal.Theincreasing uptake of new technologies requires an increased focus oncustomerexperience management in the hyper competitive and highly dynamic Indiantelecommarket. With this partnership Reliance will increase focus on their corebusiness and innovation. We are pleased to welcome more than 5,000employees whowill join us from Reliance Communications and support our long termcommitmentto India's ICT market."
This agreement will be driven by defined service level agreementgovernance.Ericsson will be responsible for improving network performance andultimatelyservice quality, with the goal of increasing customer satisfaction andretention. Ericsson will also work closely with Reliance Communications toidentify opportunities to introduce new services and expand its existingbusinesses to help realize the full potential of its network.
"This partnership will enable our enterprise customers to deploystate-of-the-art data services on our integrated network through the globalexpertise ofEricsson. This is one of the first times that wireless and wirelineenterprisenetwork is being outsourced to deliver world-class service and performanceassurance," added Punit Garg, Chief Executive Officer, Global andEnterpriseBusiness, Reliance Communications.
Reliance Communications will benefit from Ericsson's proven world-classprocesses, methods and tools and the partnership will allow RelianceCommunications to free up resources to focus on user experience, as well asimproving innovation power, agility and speed across the specifiedgeographies.
NOTES TO EDITORS
Bio and photo of Magnus Mandersson:
About Reliance Communications
Reliance Communications Limited founded by the late Shri Dhirubhai HAmbani(1932-2002) is the flagship company of the Reliance Group. The RelianceGroupcurrently has a net worth in excess of Rs. 90,000 crore (US$ 17.7 billion),cashflows of Rs. 8,000 crore (US$ 1.6 billion), net profit of Rs. 3,200 crore(US$0.6 billion).
Reliance Communications is India's foremost and trulyintegratedtelecommunications service provider. The Company, with a customer base ofabout130 million including over 2.5 million individual overseas retailcustomers,ranks among the Top 6 Telecom companies in the world by number of customersin asingle country. Reliance Communications corporate clientele includesover35,000 Indian and multinational corporations including small andmediumenterprises and over 800 global, regional and domestic carriers.
Reliance Communications has established a pan-India, next generation,integrated(wireless and wireline), convergent (voice, data and video) digital networkthatis capable of supporting best-of-class services spanning theentirecommunications value chain, covering over 24,000 towns and 600,000villages.Reliance Communications owns and operates the world's largest nextgeneration IPenabled connectivity infrastructure, comprising over 277,000 kilometers offibreoptic cable systems in India, USA, Europe, Middle East and the AsiaPacificregion.
Reliance Communications Limited, Registered Office: H, Block, 1stFloor,Dhirubhai Ambani Knowledge City, Navi Mumbai - 400 710
Download high-resolution photos and broadcast-quality video atwww.ericsson.com/press
Ericsson is the world's leading provider of communications technology andservices. We are enabling the Networked Society with efficient real-timesolutions that allow us all to study, work and live our lives more freely,insustainable societies around the world.
Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Todaymore than 40 percent of the world's mobile traffic goes through Ericssonnetworks and we support customers' networks servicing more than 2.5 billionsubscribers.
We operate in 180 countries and employ more than 100,000 people. Founded in1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company'snetsales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed onNASDAQOMX, Stockholm and NASDAQ, New York stock exchanges.
Reliance Communications Press release PDF:http://hugin.info/1061/R/1676913/546745.pdf
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Source: Ericsson via Thomson Reuters ONE
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