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Reliance to pick single outsourcing supplier
22 February 2012
India’s Reliance Communications shortlists Alcatel-Lucent, Ericsson, Huawei and ZTE for $3bn managed services deal
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Reliance
outsourcing
managed services
Alcatel-Lucent
Ericsson
Huawei
ZTE
Indian operator Reliance Communications is considering Alcatel-Lucent, Ericsson, Huawei and ZTE as potential vendors in a $3 billion managed service outsourcing agreement spread over five years, reports Business Standard.
Reliance will withdraw from its existing 50-50 managed services joint venture with Alcatel-Lucent, if the JV does not win the new contract. Reliance will not arrange a joint venture with the winner of the new contract.
The contract — likely to be finalised in four or five weeks — will cover outsourcing of management services including network operational planning, GSM management and maintenance, CDMA and wireline networks, fibre, utilities, IP and field assurance. However, Reliance will take the decisions on new roll-outs, and retain the responsibility of IT and customer services.
The contract will help Reliance to cut costs 15-20%, said the report, citing experts. The agreement might require several Reliance employees to be transferred to the winning vendor, said the report. GTB
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