Etisalat and RCOM ink outsourcing agreement

23 Jul 2009

According to the Business Standard, Etisalat DB (formerly Swan Telecom) has inked a ten-year deal worth around INR100 billion (USD2.2 billion) to outsource its infrastructure requirements to Reliance Communications (RCOM). The deal is part of Etisalat DB’s preparations for the launch of mobile operations in India and will cover both towers and transmission across 15 circles; around 30,000 towers will shared under the agreement. It is also understood that the scope of the deal could be extended in the future to include last-mile connectivity, co-location services and national long-distance (NLD) and international long-distance (ILD) services. Etisalat DB, along with subsidiary Allianz Infratech (which holds licences for the Madhya Pradesh and Bihar circles), are expected to launch commercially by the end of 2009. ‘As a new entrant in this dynamic market, this alliance provides us with key strategic advantages that will ensure a robust, quick-to-market and cost-effective rollout of services. Strategic alliances are an integral part of our plans for growth and Etisalat Group will always be receptive to such alliances, which help enhance the customer experience,’ said Etisalat chairman Mohammad Hassan Omran of the deal.

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