Nokia Siemens bags $900 mn Airtel deal

Bharti Airtel awarded $900 million (Rs 3,690 crore) contract to Nokia Siemens Networks (NSN) for the expansion of wireless and fixed line services.

Nokia Siemens Networks will expand Airtel's GSM network in eight circles, its national long distance (NLD) and international long distance (ILD) network with 1.8 million next-generation network (NGN) ports "" the largest-ever NGN contract in the country "" and its international calling card pre-paid service capacity of 4.5 million new users.

The GSM and the NGN expansions were planned over two years and the expansion of international calling cards over three years.

A memorandum of understanding (MoU) was signed between Manoj Kohli, president and CEO, Bharti Airtel, and Simon Beresford-Wylie, CEO, Nokia Siemens Networks.

Commenting on the partnership, Kohli said, "Bharti Airtel is undertaking a massive expansion and integration exercise across its mobile and fixed networks to augment its service delivery capacity significantly. Today's comprehensive network expansion contract is a reflection of this vision."

Beresford-Wylie said, "Nokia Siemens Networks has the experience and expertise in delivering integrated solutions and services and will enable Bharti Airtel to tap new market opportunities driven by convergence, optimise network performance and costs and continue to grow market share," he added.

The two-year GSM expansion will cover the eight existing circles of Mumbai, Maharashtra and Goa, Gujarat, Madhya Pradesh and Chhattisgarh, Bihar and Jharkhand, Orissa, Kolkata and West Bengal, where Nokia Siemens Networks already provides equipment and managed services.

The three-year international calling cards services expansion will see Airtel more than quadruple its capacity and adequately address its calling card business.

The calling card pre-paid service will be supported by Nokia Siemens Networks' flexible IN@vantage platform for intelligent services. It also allows Bharti to increase network traffic and related revenues by addressing specific market segments and user expectations with dedicated communication solutions.

Both Nokia and Siemens have been associated with building Airtel's mobile and fixed networks. The previous major deal for GSM expansion that was signed last year was between Nokia and Bharti valued at $400 million.