Bharti to partner Cisco for managed network services

Bharti Airtel is set to partner IT and telecoms hardware major Cisco for enhancing its managed services portfolio. With falling tariffs and reduced average revenue per user (ARPUs), all major telcos, are now looking at managed services which combines IT services with telecom offerings. According to a recent report by Gartner, network IT services is set to become a $7 billion market by 2011. Telcos are, therefore, looking to bundle end-to-end managed servicesinstallation of the hardware at the customer premises, providing customised software solutions, managing and maintaining both IT and hardware platform.

Airtel is collaborating with Cisco to launch managed Multi Protocol Label Switching (MPLS) services. With Cisco’s Tier I certification for the CISCO Managed Serviced Channel Partnership programme, Airtel will now be able to offer Indian enterprises end to end Managed VPN Services including last mile and Customer premise equipment (CPE) management, network design, installation, configuration, and 24X7 monitoring and maintenance support. Bharti Airtel expects to grow their MPLS business by 50-60 % in this financial year. The company, which has more than 400 customers on its MPLS network, intends to increase its customer base by at least 30% in the next one year. Bharti-Cisco combine would look at partnering other service providers and IT players from time-to-time depending on the specific requirements of their customers.

The Bharti move has come within a day of French-US equipment firm Alcatel-Lucent forming a JV with Reliance Communications (RCOM) to offer managed network services to domestic as well as international telecom operators. Managed services helps telcos move up the value chain and increase revenues as Indian telcos extend their footprint both within the country and globally.