Samsung strikes 7,500 crore BTS supply deal with Reliance Jio Infocomm

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Leading Korean handset manufacturer Samsung is venturing into the base transceiver station (BTS) space.

Samsung will make its Indian debut in the BTS space with Reliance Jio Infocomm (RJIL) with whom it has signed its first contract to supply active BTS infrastructure for 4G.

BTS is a piece of equipment that facilitates wireless communication between user equipment and a network.

Nokia Siemens Networks and Ericsson are the leaders in the BTS space in India, supplying to most operators.

According to sources familiar with the development, RJIL has signed a contract worth around $1.2 billion (Rs7,500 crore) with Samsung for 70,000 BTS pan India. So far, 20% or 14,000 BTS have already been supplied to RJIL by Samsung.

The BTS contract is the second deal signed between RJIL and Samsung, as the latter will also be providing 4G handsets to RJIL, which will boast of the first voice calling 4G facility on voice over LTE (VoLTE).

So far, Airtel – the only operator which has launched 4G in India — provides the service only through data cards.

However, it is unclear whether Samsung will ink more such BTS deals with other operators as it is expected that other potential 4G players will either use their own towers or source them from Indus – the largest tower company in India.



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In addition to the original base station contract for 60,000 LTE units for the initial launch, Reliance Jio has awarded second contract for 50,000 – 70,000 base stations to Samsung. According to mobile industry insiders the deal will be worth $350 – $490 million and this is the biggest deal of LTE in the country. In FY 2012-13, Samsung had bagged orders to deploy 7,000 LTE base stations for Reliance Jio Infocomm in Delhi, Mumbai and Jamnagar. The total deal was worth Rs 267 crore.
 
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