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Ericsson Wins $1B Bharti Contract

Bharti Airtel inks $1 billion network expansion contract with Ericsson

August 24, 2006

2 Min Read

STOCKHOLM -- Bharti Airtel today announced the signing of an estimatedUSD 1 billion network expansion contract with Ericsson. The contract willenable Bharti Airtel to rapidly expand its mobile services footprintfurther and reach out to all towns and cities in 15 telecom circles in thecountry. The three year service contract with Ericsson is towards thedesign, planning, supply and installation commissioning of Airtel networksin these circles.

Ericsson will also upgrade the network with mobile softswitch (MediaGateway and MSC Servers), the solution that paves the way to an all-IPnetwork. Bharti Airtel will be able to reduce the operational costs andintroduce new services in a cost-efficient way.

The scope of the agreement extends to 15 Airtel circles of Delhi, Haryana,Punjab, Himachal Pradesh, UP (West), Andhra Pradesh, Tamil Nadu, Chennai,Karnataka, Kerala, Rajasthan, UP (East), Jammu & Kashmir, Assam and NorthEast.

Mr Manoj Kohli, President, Bharti Airtel said, “"At Bharti, it has been ourendeavor to find innovative business models to deliver better customerexperience. Our partnership with Ericsson is testament to this belief as itallows us to focus on delivering better customer experience even as weleverage the world class expertise of our partners to roll out our networksacross all census towns by March 2007. In addition, we are also sourcingnext generation products that will allow us to deliver innovative products& services to our customers."

This partnership will enable Airtel to channel its resources and expertiseto its core areas of product innovation, value added services, marketing,branding & pricing, while simultaneously providing world class mobileservices by leveraging Ericsson’s world class expertise in networkmanagement.

“Our partnership with Bharti Airtel resulted in the first managed servicescontract in the industry. Speed of roll-outs plays an extremely importantrole in large expansions of this nature. Ericsson has demonstratedexpertise in this area. We are honoured and pleased that Bharti Airtel haschosen to partner with us to expand their footprint across India” said MatsGranryd, Managing Director, Ericsson India.

Ericsson AB (Nasdaq: ERIC)

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