Ericsson bags 3G, 4G network contract from Airtel

The deal

- Under the deal, Ericsson will supply, install and manage services for WCDMA radio access networks and will provide multi-standard radio equipment.

Tribune News Service

New Delhi, September 2

Swedish network gear manufacturer Ericsson has bagged a four-year 3G network expansion contract from Airtel for eight telecom circles. It also includes the contracts for the rollout of 4G network in the Delhi circle, along with four other circles.

For Delhi 4G contract, Ericsson will provide multi-standard radio equipment, including macro and small cells. The agreement also includes deployment of Ericsson's LTE RAN software for Airtel.

The company, however, did not disclose the other four circles where it would provide equipment for the rollout of 4G services.

The 3G expansion contract includes rollout of 3G services in both 2,100 MHz bands and 900 MHz (in three circles).

Under the deal, Ericsson will supply, install and manage services for WCDMA radio access networks and will provide multi-standard radio equipment.

Airtel’s chief technology officer Abhay Sarvargoankar said the investment in 3G networks was on line with the telco's focus on building next-gen smartphone network.

“The Delhi market is currently experiencing a rapid increase in the uptake of data-centric services. We have made investment in high speed 4G network to improve the data experience of the customer,” he said.

“Long-term Evolution (LTE) will be a key enabler in realising Ericsson’s vision of the Networked Society and our LTE network infrastructure will enable Airtel subscribers to enjoy a seamless, high-speed mobile broadband experience,” said Paolo Colella, head of Region India, Ericsson.

According to the India appendix of Ericsson Mobility Report, LTE subscriptions in India are expected to reach more than 230 million by 2020, forming around 17% of the total subscription base.

Meanwhile, Ericsson said it would set up its second manufacturing facility in Pune with an initial investment of around $15-20 million.

Ericsson will make telecom equipment at the plant which will be exported to around 180 countries.