GTL,Ericsson deal: Biz expectation Rs 1,650cr

Telecom infrastructure service provider GTL has signed a deal with global communications major Ericsson to offer outsourced network infrastructure services in the UK.

The companies are expecting revenues of around 200 million pounds (around Rs 1,560 crore) in the next three years.

GTL has set up a special purpose vehicle (SPV) - GTL M&A Services - through which it will provide services like engineering, operation and management, designing and building of network infrastructure. The company would provide remote network managed services from India.

"We will provide managed network services and passive infrastructure (towers) on a build-and-transfer basis to telecom companies while Ericsson will handle sales and marketing. We also intend to expand the services to other geographies across the world," Manoj Tirodkar, chairman and managing director, GTL, said.

Even though there is 100% telecom penetration in the UK, the emergence of 3G services would require another 1,000-2,000 towers. Telecom companies like O2, T-mobile, British Telecom and Vodfaone are looking at setting up additional towers - an opportunity for the SPV.

Ericsson will integrate GTL's services in the pre-bid or request for proposal stage and generate opportunities for managed infrastructure from its managed services activity in the UK. At present, Ericsson has comprehensive managed services contracts with Tier-1 mobile operators in the UK.

Commenting on the agreement, Jacqueline Hey, managing director, Ericsson UK, said, "We will offer services cashing in on the cost-arbitration in India, and the partnership will provide our company entry into the high growth market of managed network services."