Ericsson Signs $1B MSP Contract with Indian Telecom Reliance Communications

Ericsson has announced that it has signed a managed services contract with Indian telecom provider Reliance Communications valued at approximately $1 billion.

"This is one of the first times that wireless and wireline enterprise network is being outsourced to deliver world-class service and performance assurance,” said Punit Garg, chief executive officer of Global and Enterprise business for Reliance.

“We are excited to partner with Reliance Communications for this strategic multi-technology managed services deal,” said Magnus Mandersson, executive vice president and Head of Business Unit Global Services at Ericsson. “The increasing uptake of new technologies requires an increased focus on customer experience management in the hyper competitive and highly dynamic Indian telecom market. With this partnership Reliance will increase focus on their core business and innovation.”

Under the eight-year deal, Ericsson will manage both the wireless and wireline networks for Reliance. Ericsson’s duties will include maintenance, day-to-day network operations and operational planning of Reliance’s 2G, CDMA and 3G networks.

The contract will cover over 62,000 miles of fiber and mobile infrastructure in 11 telecom circles, including the cities of Mumbai and Delhi. The contract mainly covers the North and the West of the country.

Ericsson’s management of the networks is intended to increase the quality and reliability of Reliance’s services. Nearly 5,000 Reliance employees will be moved to Ericsson under the contract.

“We are happy to announce our partnership with Ericsson to manage our wireline and wireless network enabling us to provide a higher level of customer experience in terms of network and services,” said Gurdeep Singh, chief executive officer of wireless business at Reliance. “Given the complexity of network increasing with platforms, technologies and application offerings, we are banking on the experience, innovation and technical expertise of Ericsson to improve the productivity of our network and ensure that it delivers to its full potential."