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Reliance Communications and Ericsson sign USD 1 billion managed services contract for wireline and wireless networks for North and West India

STOCKHOLM, SWEDEN — (Marketwire) — 02/11/13 —

* Covers 100,000 km of fiber and mobile infrastructure in 11 telecom
circles,
across North and West of India, including Delhi and Mumbai

* Will lead to productive integration of 5,000 employees by moving them
to
Ericsson – providing them global opportunities

* Integrated management to deliver world class customer experience using
global expertise and bringing in operational efficiencies and cost
optimization

Reliance Communications Limited, India-s fully integrated
telecommunications
service provider, today signed an eight-year full-scope managed services
agreement with Ericsson (NASDAQ: ERIC) for USD 1 billion to operate and
manage
the wireline and wireless networks in the Northern and Western states of
India.

As per the contract, Ericsson will manage the day to day operations across
wireline and wireless networks and will take over responsibility for field
maintenance, network operations and operational planning of Reliance
Communications 2G, CDMA and 3G mobile networks. This agreement is aimed to
meet
the fast evolving customer demand for communications applications and
services
in one of the world-s most dynamic telecom markets.

Reliance Communications will benefit from Ericsson-s proven world-class
processes, methods and tools and the partnership will allow Reliance
Communications to free up resources to focus on user experience, as well as
improving innovation power, agility and speed across the specified
geographies.
Reliance Communications- infrastructure covers 24,000 towns and 600,000
villages
in India to which it offers converged services including voice, data and
video.

This is one of the first converged wireless and wireline managed services
contract in India, and one of only a handful in the world. Ericsson will
streamline Reliance Communications- operations by bringing all aspects of
fiber,
tower operations, wireless networks and wireline access networks to
Reliance
Communications- wireless and global enterprise business, across
differentiated
product lines. Ericsson will also drive a modernization of the tools,
processes
and best practices that are applied across the business resulting in
operational
efficiencies by managing cost through consolidation.

Commenting on the agreement, Gurdeep Singh, Chief Executive Officer –
Wireless
Business, Reliance Communications said, “We are happy to announce our
partnership with Ericsson to manage our wireline and wireless network
enabling
us to provide a higher level of customer experience in terms of network and
services. Given the complexity of network increasing with platforms,
technologies and application offerings, we are banking on the experience,
innovation and technical expertise of Ericsson to improve the productivity
of
our network and ensure that it delivers to its full potential. We are
confident
that they will exceed the expectations of our customers through
optimization of
resources and provide us cost effective solutions.”

Magnus Mandersson, Executive Vice President and Head of Business Unit
Global
Services, Ericsson, said; “We are excited to partner with Reliance
Communications for this strategic multi-technology managed services deal.
The
increasing uptake of new technologies requires an increased focus on
customer
experience management in the hyper competitive and highly dynamic Indian
telecom
market. With this partnership Reliance will increase focus on their core
business and innovation. We are pleased to welcome more than 5,000
employees who
will join us from Reliance Communications and support our long term
commitment
to India-s ICT market.”

This agreement will be driven by defined service level agreement
governance.
Ericsson will be responsible for improving network performance and
ultimately
service quality, with the goal of increasing customer satisfaction and
retention. Ericsson will also work closely with Reliance Communications to
identify opportunities to introduce new services and expand its existing
businesses to help realize the full potential of its network.

“This partnership will enable our enterprise customers to deploy
state-of-the-art data services on our integrated network through the global
expertise of
Ericsson. This is one of the first times that wireless and wireline
enterprise
network is being outsourced to deliver world-class service and performance
assurance,” added Punit Garg, Chief Executive Officer, Global and
Enterprise
Business, Reliance Communications.

Reliance Communications will benefit from Ericsson-s proven world-class
processes, methods and tools and the partnership will allow Reliance
Communications to free up resources to focus on user experience, as well as
improving innovation power, agility and speed across the specified
geographies.

NOTES TO EDITORS

Bio and photo of Magnus Mandersson:

About Reliance Communications

Reliance Communications Limited founded by the late Shri Dhirubhai H
Ambani
(1932-2002) is the flagship company of the Reliance Group. The Reliance
Group
currently has a net worth in excess of Rs. 90,000 crore (US$ 17.7 billion),
cash
flows of Rs. 8,000 crore (US$ 1.6 billion), net profit of Rs. 3,200 crore
(US$
0.6 billion).

Reliance Communications is India-s foremost and truly
integrated
telecommunications service provider. The Company, with a customer base of
about
130 million including over 2.5 million individual overseas retail
customers,
ranks among the Top 6 Telecom companies in the world by number of customers
in a
single country. Reliance Communications corporate clientele includes
over
35,000 Indian and multinational corporations including small and
medium
enterprises and over 800 global, regional and domestic carriers.

Reliance Communications has established a pan-India, next generation,
integrated
(wireless and wireline), convergent (voice, data and video) digital network
that
is capable of supporting best-of-class services spanning the
entire
communications value chain, covering over 24,000 towns and 600,000
villages.
Reliance Communications owns and operates the world-s largest next
generation IP
enabled connectivity infrastructure, comprising over 277,000 kilometers of
fibre
optic cable systems in India, USA, Europe, Middle East and the Asia
Pacific
region.

Reliance Communications Limited, Registered Office: H, Block, 1st
Floor,
Dhirubhai Ambani Knowledge City, Navi Mumbai – 400 710

About Ericsson

Download high-resolution photos and broadcast-quality video at

Ericsson is the world-s leading provider of communications technology and
services. We are enabling the Networked Society with efficient real-time
solutions that allow us all to study, work and live our lives more freely,
in
sustainable societies around the world.

Our offering comprises services, software and infrastructure within
Information
and Communications Technology for telecom operators and other industries.
Today
more than 40 percent of the world-s mobile traffic goes through Ericsson
networks and we support customers- networks servicing more than 2.5 billion
subscribers.

We operate in 180 countries and employ more than 100,000 people. Founded in
1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company-s
net
sales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed on
NASDAQ
OMX, Stockholm and NASDAQ, New York stock exchanges.

Reliance Communications Press release PDF:

This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and
other applicable laws; and

(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1676913]

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail:

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail:

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