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Ericsson Wins RCom Services Deal

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STOCKHOLM -- Reliance Communications Limited, India's fully integrated telecommunications service provider, today signed an eight-year full-scope managed services agreement with Ericsson (NASDAQ: ERIC) for USD 1 billion to operate and manage the wireline and wireless networks in the Northern and Western states of India. As per the contract, Ericsson will manage the day to day operations across wireline and wireless networks and will take over responsibility for field maintenance, network operations and operational planning of Reliance Communications 2G, CDMA and 3G mobile networks. This agreement is aimed to meet the fast evolving customer demand for communications applications and services in one of the world's most dynamic telecom markets. This is one of the first converged wireless and wireline managed services contract in India, and one of only a handful in the world. Ericsson will streamline Reliance Communications' operations by bringing all aspects of fiber, tower operations, wireless networks and wireline access networks to Reliance Communications' wireless and global enterprise business, across differentiated product lines. Ericsson will also drive a modernization of the tools, processes and best practices that are applied across the business resulting in operational efficiencies by managing cost through consolidation. Ericsson AB

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