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Ericsson, Nokia to supply equipment for India telco

Posted: 18 Apr 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Ericsson Nokia telco equipment? India mobile phone market? Ericsson Nokia India contract?

Ericsson and Nokia will supply telecommunications equipment to India's state-run Bharat Sanchar Nigam Ltd (BSNL) after Motorola dropped its legal challenge to the award. Initial reports said that the contract may amount to $5 billion but can go as high as $9.5 billion.

BSNL will order equipment to build 63.5 million mobile phone lines at $100 to $150 a line, said finance director S. D. Saxena in a Bloomberg News report. This order, Saxena said, can reach up to 127 million lines.

Of the 63.5 million mobile phone lines, ITI will supply equipment for 18 million lines under bidding rules that awards a portion of the contract for an Indian government company. Ericsson will supply 60 percent of the equipment for the remaining 45.5 million lines, with Nokia providing 40 percent, Singh said in the report.

Meanwhile, Motorola withdrew a court petition for the award after a six-month delay to focus on winning new orders in India, the report said.

Analysts project that the mobile phone market in India will continue to flourish. Recent estimates by iSuppli Corp. said that it can triple by 2011.

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