Airtel deal with Ericsson to expand 4G, 3G services

Ericsson to invest $20 mn in setting up its second plant near Pune, doesn't reveal circle names in deal with Airtel

Airtel has entered into four-year contract with network equipment supplier Ericsson to roll out 4G services and to expand 3G networks across selected circles. Ericsson also said it will invest up to $20 million (Rs 132 crore) in setting up its second manufacturing unit near Pune.

"We will be responsible for 3G expansion in eight circles of Airtel and for 4G roll out, we will be providing services in five circles starting with Delhi," said Nishant Batra, vice president of Ericsson engagement practices in India.

The company refused the reveal the circle names citing its agreement conditions with Airtel.

The agreement for 3G services include improving network connectivity in five circles and installing 3G networks in three circles. As part of the contract, Ericsson will supply, install and perform manage services for 3G network connectivity for Airtel in an energy-efficient and cost-effective manner.

For rolling out 4G services, Ericsson said it would provide multi-standard radio equipment as well a 4G focused software solution. The solution works seamlessly with the existing 2G and 3G networks deployed by Ericsson, the company said in a statement.

Last month, Airtel had announced launching 4G services in nine circles spanning 300 cities across the country. It is the only telecom operator in the country to roll out the high speed internet services. Other players such as Vodafone and Reliance Jio have said to come up with 4G networks towards end of 2015.

Ericsson declined to comment about its engagement with other Indian clients to roll out 4G services.

It also said to have engaged with several mobile operators of the country to resolve call drop issues by employing smarter technologies.

The company is ambitious about Make in India campaign and said to invest about $20 million to set up its second manufacturing unit in Pune.

Hans Vestberg, president and Chief Executive Officer of Ericsson today said the Swedish company would initially invest $15-$20 million in the initial phase to produce automated machinery in Chakan, Pune for exporting the equipment for its clients in several countries. The plant is expected to be operational in May 2016, he said.

The company's existing facility located in Rajasthan caters to its Indian demand.