RCom awards $1-billion contract to Alcatel-Lucent

This move will help India’s third-largest phone carrier by subscribers — RCom — to reduce its “investment risk” and facilitate moving 4,000 employees, or 15% of the company’s workforce, to Alcatel over the next 90 days.

Under the contract, RCom will outsource network management for both its wireless and fixed-line operations to Alcatel-Lucent. Alcatel will be responsible for network performance and service quality by setting up next-generation separating support system.

Both the companies have had a history of partnerships. In 2008, they formed a JV to offer managed-network services to domestic and international telecom operators. This JV is expected to end in June.

“This (contract) will enable RCom to take the lead in offering next-generation telecom solutions that will meet and exceed the expectations of our customers and help them transit from voice-led usage to a seamless data experience across multiple devices and platforms,” Gurdeep Singh chief executive officer, wireless business, RCom, told reporters on Wednesday.

RCom, which has over 150 million customers, is saddled with a debt of about R35,000 crore, accounting for 10% of the cumulative debt of the telecom sector.

Being the most leveraged company in the Indian telecom sector, RCom has been trying to reduce its debt load. In September, it tried to reassure investors and said the company will look at selling some stake in its telecom tower business next year to pare

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