Alcatel Lucent, Reliance Communications Managed Network Services Joint Venture Completes One Year

  • Deal SIZE crosses $ 750 Million (Rs. 3600 crore)
  • JV manages multi-vendor, multi-technology, nationwide wireless networks
  • Operations encompass 20,000 towns AND 5 lakh Indian Villages across 22 telecom circles catering TO OVER 80 Million customers

Alcatel-Lucent Managed Solutions, the first of its kind Managed Network Services joint venture company of Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Reliance Communications (BSE : RCOM), one of India’s largest integrated telecommunications service provider today completes one year. This legal entity was launched in July 2008, as an innovative business model between one of the worlds largest telecom equipment manufacturer and telecom service provider to establish a cost-effective delivery hub for global services business.

“The unique combination of strengths of Alcatel Lucent and Reliance Communications has been among the key drivers for unprecedented growth and quick subscriber ramp up on the Reliance Mobile network”, said Mr. Sandip Biswas, Head of Managed Services, Reliance Communications. “With Reliance Communications holding a 33% equity stake in the Joint Venture, it also offers us significant opportunities to further create value for our many million stakeholders”, he added. Within the first year of operations the Joint Venture has demonstrated its capability to achieve operational cost savings of 20-25%.

To ramp up the operations and lead the new entity – Alcatel-Lucent Managed Solutions appointed John Crossley as CEO. In his role, John will focus on process improvements and business development opportunities, in India and globally. Prior to taking up this assignment John was leading Alcatel-Lucent’s Middle East network operations activities. John has been in the telecom industry for over 30 years.

“We are extremely proud to have this unparalleled partnership with Reliance Communications. Alcatel-Lucent’s recognized expertise in delivering best-in-class services is helping them through the business transformation process while accelerating their operational excellence and increasing customer satisfaction.” said Andy Williams, president of Alcatel-Lucent’s Services activities.

The initial phase of the JV spanned through July to September 2008 wherein CDMA and GSM Operations & maintenance of 5 circles (Maharashtra & Goa, Mumbai, Gujarat, Madhya Pradesh and Himachal Pradesh) were successfully transitioned. In the second phase, on October 2008, Reliance Communications handed over the Rest of India’s operations. Alcatel-Lucent Managed Solutions now manages Reliance’s pan India CDMA & GSM network covering approx 80 million subscribers and providing coverage to more than 2 million sq. km of area. This makes Alcatel-Lucent the only vendor entrusted with the complete pan India, multi-vendor, multi-technology mobility network operations for a telecom service provider.

The 5-year agreement signed last year by Alcatel-Lucent and Reliance Communications is valued about USD 750 million. It is one of the largest multi-vendor managed services deal in the world and the first for multi-technology managed services in India (both CDMA and GSM).

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