Tuesday, May 13, 2008

RCom signs JV deal with Alcatel-Lucent

Reliance Communications Ltd (RCom), part of the Anil Dhirubhai Ambani Group (ADAG), has entered into a joint venture with global telecom infrastructure provider Alcatel-Lucent to offer managed network services (MNS) to telecom service providers in the domestic domain.

"This JV is a leap forward in RCom vision as it will help in bettering the competition by lessening operating expenses without sacrificing network quality," said RCom head for managed services Sandeep Biswas.

Under the agreement, a new entity will be formed with Alcatel-Lucent having 67 percent operational control.

The JV will help RCom focus on telecom services while Alcatel-Lucent will look after the infrastructure.

"We will build on Alcatel-Lucent's existing operational and multi-vendor capabilities in India to drive this innovative business model, which is an unique partnership between a leading service provider and a leading vendor in telecom space," said Alcatel-Lucent India regional unit managing director Vivek Mohan.

RCom will spend $500 million over seven years for this service. By 2009-10, the new entity will have a workforce of 2,000, with a major chunk of RCom employees.

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