India’s leading mobile service provider, Reliance Communications(Rcom) is in talks with Alcatel-Lucent to manage its 70,000-80,000 kmof fibre optic cables across India. This outsourcing deal is consideredto be worth $500 million. If the deal is struck, Rcom will be becomethe first Indian telecom company to outsource the management of itsoptic fibre cable business. Reliance Communications is choosing theAlcatel-Lucent because its is global leader in optic fibre and thelandline space.
Optic fibre cables carry voice and data andconnect all mobile towers and landlines. This will be given to JVcompany that RCom and the Franco American networks major had formedlast year where the former holds 33% and rest is held by Alcatel-Lucent.
Reliance Communications had given an outsourcing contract to this JV to handleits GSM and CDMA mobile networks in India. Recently Alcatel-Lucentbagged a $500 million 5-year outsourcing deal from Bharti to manage thelatter’s landline and broadband business.