Nokia Siemens Networks has announced today that it has received a contract from Bharti Airtel worth $700-million for expansion and upgradation of its 2G network in the country. The companies have worked jointly on projects before.

Under the contract, Nokia will increase Bharti's 2.5G network capacity by 50% in eight of its circles. Nokia will also take into consideration that its core network is 3G-ready which would help the company offer services with greater speeds at a later date.

Nokia already supplies device management solutions, mobile network portability, next-generation fixed-network and an interactive voice response system to the company.

The work under the preview of the contract involves network planning, project management, implementation, logistic and materials and system integration for the base station sites.

The eight circles where the expansion will take place include Mumbai, Maharashtra and Goa, Gujarat, Madhya Pradesh and Chhattisgarh, Bihar and Jharkhand, Orissa, Calcutta and Bengal.

The upgraded network will allow the company to increase its presence in the rural sector which accounts for 60 per cent of its monthly customer base. A new technology from NSN will be incorporated in the projects to lower their environmental impact.

Sanjay Kapoor, CEO designate Bharti Airtel said "This expansion will not only expand our networks in rural hinterland but will also allow us to deliver a rich end-user experience and satisfy the increasing demand for top quality services."