Reliance Communications plans to outsource the management of its broadband and fixed-line network, the Wall Street Journal reported, quoting a company executive.
Sandip Biswas, head of managed services at Reliance Communications, told Dow Jones: We want to outsource voice and data wired transport network (the fixed-line network). The contract is to maintain and manage all parts of this network, including the towers, power and cable networks.”
Alcatel-Lucent Managed Services, the joint venture between Alcatel-Lucent and Indian carrier Reliance Communications, seems to be the frontrunner to win the deal. The JV in which RCOM owns 33% share already manages the wireless networks of the Indian operator.
Within the first year of operations, the JV claims to have achieved an operational cost savings of 20-25%. The five year agreement signed last year by Alcatel-Lucent and Reliance Communications is valued about $750m.
Biswas said that the value of the wired services contract is likely to be bigger than the $750m deal signed last year. Industry sources say that the deal is likely to be implemented in the next three months.
