Bharti, BSNL set to outsource OFC networks

27-01-2010

Each deal could be worth about $1 billion


Indian telco Bharti Airtel has invited bids to outsource the management of its 120,00 km-plus inter-city optic fibre cable network. It hopes to close the deal before the end of this fiscal, its chief executive officer Manoj Kohli told Economic Times.

The deal is estimated to be worth up to $1 billion over a five-year period, industry sources familiar with the development said

"We will form a JV and have a stake in the company to which we award this contract" Mr Kohli added.

Bharti Airtel is also set to renew its multi-billion network-outsourcing contracts with Ericsson and Nokia Siemens this year.

State-owned telco BSNL, which has the largest fibre network in the country, comprising about 600,000 route-km, is also set to invite bids from segment players in February to outsource the management of its network. According to executives with the PSU, the deal should be closed in the second half of this fiscal. BSNL's network outsourcing contract is expected to be worth over $1 billion over a five-year period.

Source: ET




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