In a first of its kind move, Bharti Tele-Ventures Ltd has signed a $275-million deal with Finnish communications major Nokia, under which the latter will help it in building a mega network, apart from managing and maintaining the Indian firm's existing network.
"This tie-up will enable us to put up a world class state-of-the-art network, with wider coverage and enhance service quality, apart from providing economies of scale and improved cash flows," Bharti Tele-Ventures president (mobility) Manoj Kohli told reporters on Thursday in Mumbai.
Under the three-year deal, the companies would build and manage a 'Mega' network, which would service the communication needs of over one million existing customers in its three existing circles - Mumbai, Maharashtra and Goa and Gujarat - and two new circles - Bihar and Orissa.
The new circle in Bihar also includes Jharkhand, he said.
The value for three-year period for supply and services is projected at around $275 million and the agreement is on the basis of "capacity on demand and pay as you grow basis," he added.
The initiative would result in providing congestion-free networks with seamless coverage and enhanced quality in over 550 towns and cities, he said, adding that "this would help AirTel in channeling its resources and expertise to its core area of production innovation and value-added services."
Nokia country head networks (India and South Asia), Ashish Chowdhary said the company would 'continuously' deliver equipment and services based on Bharti's capacity requirements.
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