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Oct 11, 2017 11:01 AM IST | Source: Moneycontrol.com

4,000 RCom employees set for India return as Ericsson service contract nears end

RCom plans to manage its services internally going forward. The company's staff strength will now be 9,500 with the additional workforce.

4,000 RCom employees set for India return as Ericsson service contract nears end

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Ericsson and Reliance Communication are ending their four-year-old services contract over non-payment of dues by the latter.

The 4,000 employees of RCom, who were transferred to the Swedish gear maker Ericsson in 2013 for RCom's network business, will now have to return to India, a source-based report in Business Standard said.

RCom plans to manage its services internally going forward. The company's staff strength will now be 9,500 with the additional workforce.

Ericsson and RCom declined to comment on the development.

The managed services contract between the two companies enabled management of 1 lakh kilometres of fiber and mobile infrastructure in 11 telecom circles in the North and West regions by Ericsson.

Ericsson streamlines RCom's business by bringing it in sync with its wireless and global enterprise business.

In 2013, RCom transferred 5,000 employees, which reduced to 3,000 due to increasing automation. In 2014, Ericsson had also won a seven-year contract to manage RCom's network in the east and south regions.

Ericsson has approached the National Company Law Tribunal (NCLT) to recover dues from RCom worth Rs 1,100 crore. The case will be heard on November 9 to decide whether Ericsson's insolvency petition against RCom should be accepted.

In September, Ericsson had filed insolvency petitions against RCom and two of its companies seeking Rs 11.55 billion.
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