New Delhi, Feb. 11 (PTI): Global telecom equipment maker Nokia Siemens Networks today said it had obtained a $700-million contract from Bharti Airtel for network expansion and upgradation.

Nokia Siemens will expand and upgrade Airtel’s 2.5G network in eight circles to increase the telecom firm’s network capacity by 50 per cent, the company said.

The company will also ensure that Airtel’s core network is 3G-ready, enabling a faster rollout of the service at a later date.

The contract includes network planning, implementation and project management, handling of local logistics and materials, as well as system integration for the base station sites. The GSM network expansion will cover Mumbai, Maharashtra and Goa, Gujarat, Madhya Pradesh and Chhattisgarh, Bihar and Jharkhand, Orissa, Calcutta and Bengal. Nokia Siemens has been a long-standing vendor of Airtel.

Bharti Airtel has tie-ups with the company in the circles where the latter provides equipment and manages services. This contract will enable Airtel to expand its footprint into rural India, which constitutes around 60 per cent of its monthly customer base.

“This will not only expand our networks deeper into the rural hinterland but also allow us to meet the growing demand for quality services,” Bharti Airtel CEO Sanjay Kapoor said.

Rajeev Suri, CEO of Nokia Siemens, said, “With this upgrade, Bharti Airtel can enhance network efficiency for a better user experience and reduce the overall cost of owning and operating its network.”

NSN will deploy its energy-efficient network solutions for new and legacy networks to boost performance at a lower cost of ownership and reduced carbon footprint.

The project will result in improving network capacity and spectral efficiency.