RCOM mulls outsourcing fixed line and broadband services

2 Jul 2009

Indian telco Reliance Communications (RCOM) is considering outsourcing the management of its fixed line and broadband services as it looks to cut costs, the Economic Times claims. It is believed that the operator could finalise a contract for the outsourcing within the next three to four months, with any deal worth more than an estimated USD1 billion. Commenting on the possible course of action Sandip Biswas, head of managed services at RCOM, said: ‘We want to outsource the management of our optic fibre, broadband and fixed line services. We are in discussions with interested parties and should be able to finalise it in the next three months.’

The operator has already outsourced the management of its wireless networks, having inked a deal with Alcatel-Lucent Managed Solutions in July last year; RCOM hold an approximate 33% stake in the joint venture (JV). In the initial phase of the JV, between July 2008 and September 2008, the company handled CDMA and GSM operations and maintenance for five circles for RCOM. In the second phase from October 2008, RCOM handed over the rest of India’s operations. Within its first year of operation, RCOM claims the JV has achieved operational cost savings of between 20% and 25%.