GTL and Ericsson tie up for UK mobile market

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Mumbai, Feb 5: Network service provider and telecommunication arm of the city based Global Group- GTL and mobile and broadband communication major Ericsson have formed a strategic alliance to enter the Managed Network Infrastructure Service (MNIS) market in UK.''The basic aim of this alliance is to allow Ericsson to become more aggressive using GTL. The UK has huge potential in terms of manpower and finance and we'd also love to expand throughout Europe, but we are taking one step at a time,'' GTL Chairman and Managing Director Manoj Tirodkar said.

Though the Capex (capital expenditure) has not been revealed, the alliance is expecting revenues of UK Pound 90 million- UK pound 200 million in the next three years. Under the terms, GTL will build 1-2000 towers and realign another 3-4000 towers. Ericsson, on its part will handle the marketing among its network operators and service providers. On the basis of agreement with network operators, GTL will operate and maintain some of the constructed towers.

''Cost reduction will be an important aspect. At present, the cost of building a tower there is UK Pound 3,000, we'll try and cut down the costs by 30 per cent'', Mr Tirodkar said.

To further reduce costs, the operation and maintenance (O&M) for towers under GTL will be carried out from India. This move is expected to slash the operational costs by a further 15 per cent.

GTL will expect an EBITA of 20-22 per cent and the bottomline to improve from 8 per cent to 12 per cent from the partnership, Mr Tirodkar added UNI ZC SR SKB AK RN1643

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