IBM Gets Additional Business From IDEA Cellular to Integrate IT Operations in Two More Service Areas in India

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Eight-Year Transformation Services Contract Includes Integration of Software Applications, Hardware, Data Center Operations, IT Help-Desk and Transition Services

IBM (NYSE: IBM) today announced that it will integrate the end-to-end information technology (IT) operations of IDEA Cellular, a leading telecom operator, in two service areas of Punjab and Karnataka in India. Through the acquisition of Spice Communications, IDEA Cellular has recently launched its services in the two areas with a subscriber base of approximately four million.

The scope of the eight-year agreement, signed in December 2008, includes integration, transition and migration of existing Spice applications, hardware, packages and products to the IDEA Transformed Applications platform. As part of the deal, IBM will manage all IT operations and services for IDEA's business in Punjab and Karnataka. In addition, IBM will migrate the IT help desk services to its state-of-the-art centralized helpdesk in Pune.

The complete integration, transition and migration of the IT operations and business processes of Spice Communications with IDEA is expected to be completed within 27 months and is valued at US$19.2 million (Rs. 86 crores). After completing the transition, IBM will manage IT operations in the two service areas, under the existing outsourcing services contract with IDEA.

"IBM has showcased in-depth knowledge and expertise in managing and augmenting IDEA's IT infrastructure and business processes," said Mr. Prakash Paranjape, Chief Information Officer, IDEA Cellular. "Our experience with IBM over the last two years gives us confidence that the two new service areas will be integrated seamlessly into the IDEA network."

The deal builds on the existing 10-year business transformation pact that IBM had signed with IDEA Cellular in March 2007 to integrate, innovate and transform IDEA's business processes and IT infrastructure. The pact is designed on an innovative risk-reward sharing model that is based on a shared revenue arrangement. It covered all of IDEA's existing operations, expansion into new circles and potential new additions. In June 2007, IBM signed another 10-year contract to deploy, integrate, innovate and transform IDEA's Interactive Voice Response Self-Service project.

Commenting on the extended partnership, Ashish Kumar, IBM Vice President, Client Services in India and Southeast Asia, said, "This agreement further strengthens our relationship with IDEA Cellular. The integration of Spice Communication into IDEA Cellular's IT infrastructure will help showcase some of the best practices and deep domain knowledge within IBM. This will allow IDEA to provide its stakeholders with greater value, scalability and service delivery innovation. We are delighted to extend this partnership with IDEA Cellular."

About IBM

For more information on IBM visit www.ibm.com/services.

About IDEA Cellular Ltd.

IDEA Cellular Ltd. is a leading GSM mobile services operator with over 38 million subscribers, under brand IDEA. It has licenses and spectrum to operate in all 22 service areas of India with commercial operations in 15 service areas, currently. IDEA is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.

IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 20 countries, and is anchored by over 100,000 employees belonging to 25 nationalities. More information on the company is available at: www.ideacellular.com and on the group at: www.adityabirla.com