3. Two types of contract have been proposed in the case.

What would
be the salient differences in the contract provisions for these two types?
Ans.
Contract with Ericsson, Nokia
and Siemens
Deliverables of Vendor to provide network
the contract
capacity-Erlangs- according to the
projected requirement of each
circle of operation, as mentioned
in the contract.

Contract with IBM

Comprehensive end to
management
service
supplying,
installing,
managing all its hardware
software requirements.

end
for
and
and

Service
Charges

Bharti to pay fee according to IBM receives a share of

actual capacity that is been used Bhartis revenues and the
by customers.
percentage of the share
decreases as overall revenue
increases.

Ownership

Ownership of assets lies with Ownership with IBM. Bharti to

Bharti.
get complete service.

Maintenance
Under
O&M
agreement,
and
Quality maintenance is carried out by
control
Equipment supplier.
Quality assurance tests to be
performed by Bharti as specified
in service level agreements(SLAs)

Agreement
Tenure
Personnel

Maintenance
of
the
IT
architecture,
excluding
all
telecom
network-specific
structures and networks, to be
carried out by IBM.
Quality assurance tests to be
performed
by
Bharti
as
specified
in service level
agreements(SLAs)

Initial period of three years subject Initial period of five years,

to renewal by mutual agreement.
renewable for another five
years, total 10 years.
Bharti personnel carrying out the Bharti personnel carrying out
tasks would be transferred to the the tasks would be transferred
vendor
to the vendor