Ericsson ties up Compaq and makes move in India

Ericsson is extending its current service agreement with Compaq – Compaq will provide service to more sites in Sweden, while Ericsson will sell hardware to Compaq.

Today, Ericsson announced that it is extending its current service agreement with Compaq – Compaq will provide service to more sites in Sweden, while Ericsson will sell hardware to Compaq.

The new agreement will last for five years and has a total value of $200 million. The extension is in line with Ericsson’s efforts to reduce its IT-costs.

In addition, Ericsson will sell hardware such as Unix servers, workstations, NT servers, desktop and notebook PCs to Compaq before year-end. That sales transaction is valued at $140 million.

In an unrelated move, Ericsson also announced that it has won mobile infrastructure orders worth $50 million from BSSL, a joint venture between Hutchison Telecom of Hong Kong and Essar Group of India.

Ericsson will provide the complete core switching network infrastructure, radio network and microwave equipment to BSSL to operate GSM services in three new areas of Karnataka, Andhra Pradesh and Chennai.

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