March 2, 2021

Ericsson gets a billion dollar chunk out of Rcom’s telecom cake

Reliance Communications has apparently outsourced it operations and management of its own network in northern and western India successfully, and sold them off to Ericsson in a whopping $ 1 billion agreement spread over a period eight years.


According to a joint statement by the two companies, the contract would cover the intake of around one lakh kilometers of fiber and mobile infrastructure in a total of 11 telecom circles of Reliance Communications. This set up will spread across North and West of India including that of Delhi and Mumbai.

The agreement that is said to stretch for up to eight years is valued approximately at $ 1 billion and will witness the joining of 5,000 employees of RCom into the Ericsson camp.

RCom’s Chief Executive Officer for Wireless Business, Gurdeep Singh said with the given complexity of network increasing with platforms, technologies and application offerings, they were banking on the experience, innovation and technical expertise of Ericsson to improve the productivity of our network.

As per the contract, Ericsson would be managing the day to day operations across wireline and wireless networks and will take over the responsibility for field maintenance, network operations and operational planning of RCom 2G, CDMA and 3G mobile networks, it added.

The above mentioned partnership will allow RCom to put more focus on user experience and at the same time improve innovation, power and speed across the designated areas.

The RCom infrastructure is presently covering around 24,000 towns and 6 lakh villages in the country and to these very geographies it offers converged services which include voice, data and video.