The Aditya Birla group-led Idea Cellular has selected Swedish telecom equipment vendor Ericsson as the sole supplier of its GSM network and managed services in Mumbai. The rollout of the services is planned to begin shortly, with the commercial launch rescheduled for May 2008. Though Idea was granted licence for the Mumbai circle late in 2006 it is yet to be accorded the spectrum required to commence operations.

The two parties have entered into a managed services agreement for four years, under which Ericsson will supply radio access, microwave transmission, and core network equipment, including Ericsson’s mobile softswitch solution. ?Ericsson will also be responsible for network deployment and integration, as well as managed services including network and field operations, a company statement said on Friday, without disclosing the deal amount. It will also provide a real-time charging system for traditional telecom services and new multimedia services.

“This move extends our long-running relationship with Ericsson and will provide us with a state-of-the-art network in Mumbai. It ensures that we are well-positioned for future network development and address increasing customer demand for mobile services in a sustainable and cost-efficient way,” said Sanjeev Aga, managing director, Idea Cellular.

The deal marks Ericsson’s first network win in Mumbai and completes its footprint in India’s 23 telecom circles. The mobile softswitch solution, which sets the stage for Idea to evolve towards an all-IP network for smooth launch of next-generation multimedia services, supports cost-effective network operations for mobile voice services.

“The contract is yet another milestone in our strong relationship with Idea Cellular. We are honored by the confidence shown in selecting us as the preferred vendor,” said Mats Granryd, MD, Ericsson India.

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