Reliance Communications, Alcatel-Lucent to form JV for managed networks

12 May 2008

Anil Dhirubhai Ambani group firm Reliance Communications Ltd and French-American telecom service provider Alcatel-Lucent will form a joint venture to tap the managed nework service market.

The deal is expected to cost Reliance Communications over $400 million.

The joint venture will cover Reliance Communications' network in 12 circles, mainly in the north and western regions, Reliance said in a release.

The joint venture will initially cater to outsourcing requirements of Reliance Communications and the deal is expected to generate business of the value of around $500 million in seven years, it added.

The joint venture, to be rolled out nationally later, will cover both CDMA and GSM networks of Reliance Communication. It will also cater to the global operators.

Reliance Communications, India's second-largest mobile service provider, said it would own 33 per cent of the venture for network management.