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Bharti plans $1bn network outsourcing deal
27 January 2010
Manoj Kohli, CEO of Indian operator Bharti Airtel, is seeking bids to take part in a joint venture that will manage its intercity optical fibre network
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[Bharti Airtel]
[India]
[managed services]
[Alcatel-Lucent]
[Ericsson]
[Nokia Siemens Networks]
[NSN]
Comment: This is a huge opportunity for a managed services unit of a vendor, or for a global wholesale operator, to work with Bharti Airtel. Alcatel-Lucent already has a managed services joint venture, but the company has contracts with most vendors, including Ericsson and NSN.
Indian operator Bharti Airtel is looking to outsource the management of its inter-city optical fibre cable network. It is seeking bids for the 12,000 kilometres-plus cable business and is expecting to close the deal before the end of the current fiscal year.
The deal is estimated to be valued up to $1 billion over a five-year period. According to Bharti Airtel CEO, Manoj Kohli, the company will form a joint venture and will take a stake in the company to which the contract is awarded.
Bharti Airtel is also planning to renew its multi-billion network-outsourcing contracts with Ericsson and Nokia Siemens Networks in 2010. Bharti runs optical fibre cable network of over 100,000 route kilometres.
BSNL, which owns the biggest fibre network in India, is also set to invite bids from segment players in February to outsource the management of its network. BSNL’s network outsourcing contract is likely to be worth over $1 billion over a five-year period. GTB
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