Gurgaon, August 01, 2011: Sistema Shyam Teleservices Ltd. (SSTL), which nationally operates telecom services under the MTS brand with over 12 million wireless subscribers, today extended its current managed services contract with Ericsson (NASDAQ: ERIC) in India. The extension adds four new circles of CDMA wireless networks and a new three-year contract including the management of fiber transport and wireline networks in Rajasthan.

·  Renewed partnership adds four new circles supplied by Ericsson: Rajasthan, Gujarat, UP East and UP West.

·  The contract also includes managed services for the fiber transport and wireline networks in Rajasthan.

·  About 200 SSTL India employees to join Ericsson India.

Under the three-year agreement, Ericsson will be responsible for network optimization; operations and maintenance including field operations and 24/7 network service assurance, and fulfillment network service provisioning, customer problem management and spare parts management.

Channeling the servicing of the multi-vendor networks to Ericsson will lead to efficiencies and improved response time for SSTL and better service for its customers.

Vsevolod Rozanov, President & CEO SSTL, said: “Strengthening our existing relationship with Ericsson, we have entrusted them with the responsibility of managing an additional four circles along with the management of our largest fiber transport and wireline networks. This association is expected to further enhance our efficiencies and ensure quality service for our customers.”

Magnus Mandersson, Head of Ericsson’s Services business, said: “This is an important milestone for Ericsson in India, as we are extending our relationship with SSTL in three directions: time, geography and scope. For the first time in India, we will manage fiber transport and wireline networks. We welcome the employees who join us and we look forward to setting new standards of network performance for SSTL.”

As part of the agreement, 200 SSTL employees in Rajasthan will join Ericsson India.  According to the renewed partnership, Ericsson will be operating MTS’ wireless networks in Delhi, Haryana, Uttar Pradesh East, Uttar Pradesh West, Gujarat and Rajasthan. 

In September 2010, SSTL awarded a managed services contract to Ericsson to manage their multi-vendor wireless networks in two circles, Delhi and Haryana. The extended partnership is evidence of the significant cost and quality improvements already realized in the network.