Bharti set to outsource cable infrastructure

12 Aug 2009

Indian telco Bharti Airtel is planning to outsource the management and maintenance of its fibre-optic network, the Economic Times reports. The move comes as part of the telco’s policy to outsource non-core activities in a bid to reduce costs. Any prospective deal for management of the 80,000km long cable is expected to be worth an estimated USD500 million over a five-year period. Citing information gathered from an executive familiar with the development, the reports claims that Bharti has already sounded out several large vendors regarding the possible deal. According to other unnamed source, a joint venture between Alcatel-Lucent and Bharti is the most likely to bag the contract; in April this year Bharti and Alca-Lu created a JV to manage the former’s landline and broadband businesses. Bharti holds a 26% stake in the tie-up, with the French-US vendor holding the remaining 74%.

India, Alcatel-Lucent, Bharti Airtel