GTL in pact with Ericsson for UK tele services

Telecom infrastructure service provider GTL has roped in global communications major Ericsson to offer outsourced network infrastructure services in the UK. The companies are expecting revenues of around ¤200 million (around Rs 1,560 crore) in the next three years.

GTL has set up a special purpose vehicle - GTL M&A Services - through which it will provide services like engineering, operation and management, designing and building of network infrastructure. The company would provide remote network managed services from India.

"We will provide managed network services and passive infrastructure (towers) on a build and transfer basis to telecom companies, while Ericsson will conduct the sales and marketing. We also intend to expand the services to other geographies across the world," GTL Chairman and Managing Director Manoj Tirodkar said.

At present, setting up an running a tower in the UK costs around ¤3,000 pound for an another, and the companies intends to reduce this by around 25-30 per cent per operator in that country, he said.

Even though, there is a 100 per cent telecom penetration in the UK, the emergence of 3G services would require another 1,000-2,000 towers.

Telecom companies like O2, T-mobile, British Telecom and Vodafone were looking at setting up additional towers, which is an opportunity the SPV was looking at.

Ericsson will integrate GTL's services in the pre-bid or request for proposal stage and generate opportunities for managed infrastructure from its managed services activity in the UK.