Indian Economy News

Huawei bags Rs 93-crore deal from Tata Teleservices to upgrade wireline network

New Delhi: Chinese telecom gear maker Huawei has secured a three-year contract worth $15 million (Rs 93 crore) from Tata Teleservices to upgrade the Tata group telecom company's wireline network, a person familiar with the development said on condition of anonymity.

Under the deal, Huawei is modernising Tata Teleservices' pan-India internet protocol-based core network with routers that support 100G and 400G technology. The person said the deployment of core routers enables Tata Teleservices to handle more data services.

"Data is growing and core network also needs to be prepared to handle that surge in data. That's why the telco wanted to be ready for that growth," the person added. Tata Teleservices did not immediately respond to ET's queries, while Huawei declined comment.

Tata Teleservices offers GSM and CDMA services in 19 telecom circles, including nine 3G circles in the country under the brand name Tata DoCoMo. It recently won more CDMA airwaves in the just-concluded auction, which can be used to deploy 4G LTE technology that supports high-speed broadband. The telco operates in more than 450,000 towns and villages across the country.

As smartphone sales surge, the Indian telecom industry is seeing subscribers use more data services on 2G and increasingly on 3G. This trend is only going to strengthen with the addition of 4G technology, which offers even higher data download speeds.

Analysts say the core network along with the backbone networks needs to be beefed up accordingly, so that they are capable of handling increasing data traffic.

To support the data growth, telecom companies in the country have started to aggressively pursue upgradation through introduction of internet protocol (IP)-based solutions.

The backhaul network collects the overall traffic coming from the wireless network while the IP core network processes the whole data and sends it to the backhaul. Tata Teleservices had recently upgraded its 3G network to HSPA+ (High-Speed Packet Access) technology with the help of Finnish telecom gear maker Nokia Networks in Karnataka and Haryana & Punjab circles.

Huawei, on its part, has had some success in winning deals for wireline networks. Last year, the Chinese company inked a $150-million pan-India deal with Vodafone India to upgrade the No. 2 operator's wireline networks. The company also bagged contracts from Bharti Airtel and Idea Cellular worth $60 million each to deploy solutions that will augment capacity upgrade and augment capacity of their respective wireline networks.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.