Ericsson AB Won 1 Billion Contract

Ericsson AB won a contract worth U.S. $ 1 billion to manage the system telephone operator India, Reliance Communications Ltd.. The world's largest manufacturer of wireless network is believed to participate in developing the services business in Asia.


In a statement, Ericsson said that as part of an eight-year contract, about 5,000 employees will be transferred to Ericsson Reliance in Stockholm. In the contract, Ericsson will operate and manage the wired and wireless networks in India Reliance west and north India.

This victory is a part of Ericsson's effort to sell more network management and maintenance services in Asia. It was as weak infrastructure investments in a number of European mobile phone operator's debt crisis and increased competition.


Last year Ericsson service revenue rose 16%. While network equipment sales decreased 11%.