Nokia signs new $400m deal with India's Bharti

Bharti Airtel announced yet another network outsourcing deal by awarding a $400 million contract to Nokia for expanding its managed GSM networks in eight circles, a report from the Economic Times of India said.

The report said this also marks Bharti's third major deal with Nokia in the last two years.

'The company will raise resources through internal accruals to fund the order,' Manoj Kohli, president, Bharti Airtel was quoted as saying.

According to the executive, Bharti would have 100% ownership of the networks supplied by Nokia, with the actual payment being linked to utilization of capacity and fulfillment of agreed quality of service parameters.

This comes close on the heels of Bharti's recent signing of a $1-billion three-year service contract with Ericsson towards design, planning, supply, installation, commissioning and upgrading of its network in 15 telecom circles, the report said.

More importantly, this further emphasizes Bharti's policy towards outsourcing all operational activities, including customer services to global majors.

Under the deal, Nokia will provide managed services and expand Airtel's GSM/GPRS/EDGE networks in eight circles including of Mumbai, Maharashtra and Goa, Gujarat, Bihar, Orissa, Kolkata, West Bengal and Madhya Pradesh, the Economic Times of India report further said.