Bharti and Alcatel-Lucent ink USD500 million fixed line outsource deal

1 May 2009

Indian telco Bharti Airtel and French-US hardware vendor Alcatel-Lucent have inked a five-year deal worth USD500 million that will see Bharti outsource its fixed line network to Alca-Lu. The two companies have formed a joint venture to manage Bharti’s broadband and fixed line services in which Bharti will hold a 26% stake; the remaining 74% is held by the hardware vendor. The newly formed company will be run by 4,000 Alca-Lu employees, while Bharti will transfer staff from its fixed line operations. Commenting on the agreement Manoj Kohli, Bharti Airtel’s CEO, said: ‘It will 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.’ According to TeleGeography’s GlobalComms database, Bharti had 2.28 million fixed line voice subscribers and 992,775 broadband subscribers at end-2008.

India, Alcatel-Lucent, Bharti Airtel