GP's network expansion drive continues
October 14, 2008 00:00:00
Naim-Ul-Karim
The country's largest cell phone operator Grameenphone has awarded Ericsson a contract worth about US$500 million to expand the capacity of the company's internet protocol core, officials said Monday.
Under the contract, the Swedish telecommunications equipment maker will expand and deploy additional parts of GSM core and radio access network, while also providing support services, they said.
Both Grameenphone and Ericsson would not disclose the value of the contract, but sources briefed on the development said it would be no less than US$500 million.
The latest deal with Ericsson is part of Grameenphone's continued drive to expand its network, prodded by an exponential growth in subscribers over the last year. In February last, the company signed another deal valued at US$500 million with the Chinese telecom equipment manufacturer Huawei to develop its infrastructure.
Grameenphone, a subsidiary of Norwegian Telenor Group, has recorded hefty growth in recent years and traffic increased considerably in 2007-2008.
"The contract with Ericsson will enable Grameenphone to improve its services to its more than 20 million customers," an Ericsson official said.
"The contract covers expansion and deployment of additional parts of the GSM core and radio access network. Ericsson will also provide related support services to Grameenphone throughout the contract period," he said. "This will ensure a flexible, scalable and robust network, enabling Grameenphone to cost-effectively develop a range of innovative services".
Ericsson officials said the Swedish company will provide products to Grameenphone for all parts of its GSM network and the network is future-proof for possible upgrades to 3G and products like the new-generation Mobile Softswitch Solution (MSS) including Ericsson MSC Server Blade Cluster.
The MSC Server Blade Cluster is an innovative new product that employs highly scalable and efficient blade technology. It provides ultra-high capacity, supporting up to 8 million subscribers with only two cabinets.
Anders Jensen, Grameenphone's chief executive, said the ties with Ericsson can be seen as a launching pad for the next generation of GP's network solution. "This investment in our network will help us to meet the needs of our rapidly increasing subscriber base to keep our leading position," Jensen said in a prepared comment delivered to the FE.
Speaking to this reporter, Arun Bansal, who oversees Ericsson's Bangladesh business, said GP is a good customer of Ericsson and the contract reinforces the long term partnership between the two companies.
"This contract will allow Grameenphone to address strong subscriber growth and capture the full potential of this dynamic market," he added.