Airtel Outsources Infrastructure to Alcatel Lucent

by CXOtoday Staff    Apr 30, 2009

Alcatel-Lucent will manage the Bharti Airtel s nationwide fixed line and broadband internet services. In the deal valued at $500mn for five years, Bharti will hold a 26% stake in the JV while Alcatel-Lucent will own the balance 74%, the companies said in a joint statement.

As a part of the agreement, Alcatel-Lucent will design, plan, deploy, optimize and manage Bharti Airtel’s broadband and telephone network across India. A new legal entity is being formed which will be operated by Alcatel-Lucent.

This joint venture is another step towards Bharti Airtel’s vision to continuously redefine and deliver the benchmarks of customer experience. We will leverage Alcatel-Lucent’s global expertise in IP transformation and network management while allowing us to focus on customer delivery and market growth, said Manoj Kohli, CEO & joint managing director, Bharti Airtel.

It will also help us accelerate performances as we migrate to next generation networks for our broadband and telephone customers, opening the door to advanced services and applications.

This managed services partnership will include all end-to-end activities service rollout, installation and fault repair, service continuity and transformation. It will support Bharti Airtel’s transformation to next generation networks, offering advanced services like high-speed internet, triple play, media-rich VAS, MPLS, VPN for both retail and business customers.

The partnership will also drive optimal capital investment and increase operational efficiency by moving voice and data traffic onto a single, ‘packetized’ infrastructure, according to a statement.

This is not the first time that Airtel has outsourced IT architecture. Also, Alcatel Lucent now joins direct competition with Nokia and Ericsson for similar deals in the telecom sector.