labels: ibm india, idea cellular, telecom
Idea signs 10-year technology pact with IBM news
22 March 2007

Mumbai: Mobile service provider Idea Cellular Ltd has entered into a 10-year business transformation pact with computer technology giant IBM, to enable it to integrate new technology, innovate and transform its business processes and IT infrastructure.

The pact will enable Aditya Vikram Birla group company Idea to leverage opportunities from convergence of voice, data, video and wireless technologies to add new revenue streams.

The agreement, worth around $600-$800 million, covers all of Idea's existing operations as also any potential additions. The revenue model of the pact has a bearing on Idea's business and circle expansion.

"On a quarterly basis it would be a percentage of the Idea's total revenue," Idea Cellular managing director Sanjeev Aga said.

"We will harness IBM's power to support Idea's explosive growth with robust, best-in-class solutions that addresses scalability, complexity, innovation and cost control, to provide Idea with the most advanced business processes globally," Aga said.

"IBM will bring its deep global expertise in business transformation and innovation to enable Idea to meet its customer value, business growth and productivity objectives," IBM South Asia and India managing director Shanker Annaswam said.

Idea, meanwhile, is planning to demerge its telecommunications tower business, Aga pointed out.

"We have just begun to evaluate the possibility of demerging our tower operations and we will know in two to three months whether we want to do it", Aga said.

Aga said the company currently owns about 8,000 towers and around 10,000 cell sites. Idea's move is in line with activity in the local industry.

Rivals Bharti Airtel and Reliance Communications are also in the process of spinning off their tower infrastructure into separate entities.

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Idea signs 10-year technology pact with IBM