GSM operator Idea Cellular and international equipment maker Nokia Siemens have entered into a $500 million network expansion contract for two years. This would see Idea expand its GSM/ GPRS/EDGE networks across six circles ?? Delhi, Haryana, Uttar Pradesh (East and West), Andhra Pradesh and Kerala. “This will allow Idea to double its capacity and cover 6,000 new centres,” stated Idea’s MD, Sanjeev Aga, at a press conference.
The contract covers the supply of GSM equipment, intelligent network, value-added services and circuit packet core equipment. The company will deploy state-of-the-art equipment like flexi BTS, mini-ultra base stations, Release 4 architecture, media gateways and MSS servers.
Says Ashish Chowdhary, Nokia Siemens India’s subregional head: “The deployment of products will be done in India as soon as they are globally launched.” This deal is Nokia Siemens’ first contract in India after the merger of Nokia Networks with Siemens Communications in April 2007, though the combine has had previous experience in working with Idea.
Earlier, Nokia was Ericsson’s principal supplier for equipment, which was responsible for servicing Idea’s Andhra Pradesh, Delhi and Haryana circles. The erstwhile Siemens was simultaneously catering to Idea’s requirements in the Kerala and Uttar Pradesh (East and West) circles.
For Idea, which operates in 13 telecom circles, this is a strategically well-planned move. With a customer base of about 15 million, it is looking at a pan-Indian presence and new subscribers to take on stiff competition from rivals such as Bharti Airtel, Hutch, Reliance Communications and Bharat Sanchar Nigam Limited.Signing the partnership therefore is a subset of a larger plan and an ongoing process to strengthen its ability to market innovative voice and data services to its customers by leveraging best technologies.
In all, the agreement is a positive development for both companies.
