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Ericsson deal nears end: RCom to take back 4,000 staff

RCom will re-absorb the employees who had been sent to Ericsson, sources confirmed

Kiran Rathee  |  New Delhi 

Reliance Communications

Around 4,000 employees of (RCom), who were transferred to the Swedish gear maker in 2013 for managing the wireline and wireless network of the company, are headed back home. and have been in a managed services contract for four years, but now the two have decided to end the pact over non-payment of dues to the Stockholm-based equipment major. As per the agreement, the employees will return to after the termination of the contract.

With the addition of 4,000 employees, the staff strength is estimated to rise to 9,500. Going forward, will manage its services internally, sources said. has already approached the National Company Law Tribunal (NCLT) to recover dues worth over Rs 1,100 crore from The tribunal will hear on November 9 if the insolvency petition by against will be accepted or not. will re-absorb the employees who had been sent to Ericsson, sources confirmed. When contacted, and declined comment. After the 2013 deal, had transferred around 5,000 of its employees to the rolls of However, over the course of four years, the numbers reduced by 1,000 due to rising automation in managing networks. The managed services deal between the two covered 100,000 km of fiber and mobile infrastructure in 11 telecom circles, across North and West of India including Delhi and Mumbai. The contract brought about significant operational efficiencies and cost optimization for This was seen as of the first converged wireless and wireline managed services contract in India. helped streamline RCom’s operations by bringing all aspects of fiber, tower operations, wireless networks and wireline access networks to its wireless and global enterprise business, across differentiated product lines. It also allowed to focus on core business processes while managed the day-to-day network functions.

THE CONTRACT AND AFTER
  • After the 2013 deal, transferred about 5,000 employees to the rolls of Ericsson
  • will re-absorb the employees who had been sent to Ericsson
  • The staff strength is estimated to rise to 9,500 after the addition of 4,000 employees
  • has approached the NCLT to recover dues worth over Rs 1,100 crore from RCom
  • The managed services deal between the two firms covered 100,000 km of fiber and mobile infrastructure in 11 telecom circles in India

First Published: Wed, October 11 2017. 00:48 IST
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