As part of the new three-year deal, Nokia will provide managed services and expand Airtel networks to cover all towns and cities in eight Indian regions. The network monitoring operations will be carried out from Nokia’s Global Networks Solutions Center in Chennai. Nokia will also deploy its WAP gateway system across Airtel’s national network, and provide related systems integration and consulting services.

The contract is Nokia’s third major win with Airtel in the last two years, which has taken a highly aggressive approach to outsourcing its non-core network and back-office functions. It previously awarded Nokia a $27m deal managed services deal in May 2004, and a $125m contract in August 2005.

Airtel is also working closely with Nokia’s close rival Ericsson, and has a three-year, $1bn deal with the latter to upgrade and manage its network in 15 Indian regions.