BANGALORE: Nokia has reached a five-year managed services agreement to run Hutchison Essar's network operations in nine circles in India. Nokia will assume the operation of Hutchison Essar's networks in Gujarat, Karnataka, Andhra Pradesh, Chennai, Uttar Pradesh (East and West), Rajasthan, Haryana and West Bengal, thus allowing the operator to better focus on its customers and core activities.

The agreement, for which documentation is being finalised, calls for Nokia to provide an array of solutions from its extensive services portfolio, including network planning, project management, configuration and optimization, network operations and maintenance and the administration of third party vendor contract management. Nokia will also welcome over 600 Hutchison Essar staff into its Services business unit.

"Nokia's managed service know-how, plus its proven track record when it comes to operating and enhancing networks worldwide, were key drivers in helping us make this decision," Hutchison Essar Limited MD Asim Ghosh said.

"We are delighted to extend our cooperation with Hutchison Essar to managed services," said Nokia Networks senior VP Rajeev Suri. "The services business has become increasingly important for Nokia. Our managed services will improve Hutchison Essar's cost structure and further enhance their service offerings."

The contract deepens already strong ties between the two companies -- Nokia is the supplier of GSM network equipment to nine of Hutchison Essar's 13 circles, making it the largest network vendor for the operator, states an official release.

Nokia's Managed Services business is a key part of its Services business unit, and a core part of the company's drive to help operators enhance their service offerings and reduce costs. To date Nokia has 36 managed services contracts in 28 countries, and it expects this figure to grow in the coming years.

Nokia's operations in India include networks and terminals sales divisions, three Research and Development facilities and an upcoming manufacturing facility in Chennai that will produce both terminals and GSM infrastructure equipment.