Read the statement at the bottom, another big deal is coming.
Mumbai, Jan. 16:
Reliance Communications has awarded a $1 billion, eight-year, network outsourcing contract to telecom equipment manufacturer Alcatel-Lucent.
Under the deal, Alcatel-Lucent would manage Reliance Communications’ (RCom) entire network in the eastern and southern India up to 2020. The contract includes managing wireless, wired, fibre and enterprise connectivity networks among others.
“The key thing is that we are moving from voice era to the data era, and customers are unforgiving when it comes to call drops or lapses. This tie-up will help us provide consistent service quality across networks, as customers use multiple devices and platforms,” said RCom Chief Executive Officer (Wireless Business) Gurdeep Singh.
For RCom, this means that it would only have to deal with a single vendor for both technology and devices compared with more than 100 it deals with now. It would also help in cutting costs, while about 4,000, roughly 15 per of RCom’s total manpower, would be shifted to Alcatel-Lucent as part of the deal.
In 2008, the companies had entered into a five-year, $750 million network outsourcing deal.
“The contract is for five years and extendable by another three years on mutual agreement,” said Munish Seth, President and Managing Director, Alcatel-Lucent India.
“This deal helps us to bring in new technologies, processes, skills and new tools. The scope in these two regions is much higher in magnitude of what we do today, it’s huge and vast. There are different types of technologies which we are going to manage now,” Seth said.
Alcatel-Lucent will set up and operate next-generation operations support systems (OSS) and introduce advanced real-time optimisation tools to improve network performance.
SIMILAR DEAL IN PIPELINE
RCom, controlled by Anil Ambani, is also close to signing a similar contract with in a couple of months.
“We are looking at a similar deal, and hope to sign it within a couple of months,” RCom’s Singh said but did not provide further details.
RCom had about 134 million subscribers as of November