The expansion will enable BSNL to significantly increase its network coverage and capacity in the states of Jammu & Kashmir, Haryana, Uttaranchal, Uttar Pradesh (both east and west circles), Himachal Pradesh and Rajasthan.

"This is an important network expansion to BSNL as we strive to offer the best network coverage and capacity to our subscribers," said GS Grover, director commercial and marketing, BSNL.

"We are delighted to strengthen our successful cooperation with BSNL," says Ashish Chowdhary, country head, networks, Nokia India. "This expansion provides BSNL the ability to enhance its network coverage and capacity, and shows the strength of Nokia''s full range of service offerings."

Services play an important role in the contract, including complete network planning and optimisation, infrastructure design, supply and implementation, and commissioning as well as systems integration and Nokia''s over-the-air (OTA) device management solution.

This expansion is actually an extension of the $284-million GSM / EDGE and GPRS contract signed by Nokia and BSNL in 2004.

Nokia''s operations in India include networks and terminals sales divisions, three research and development facilities and an upcoming manufacturing facility in Chennai that will produce both terminals and GSM infrastructure equipment. Nokia also plans to open a global networks operation center in India by the end of the year.

BSNL is the largest telecom player in India with the second largest number of GSM subscribers after Airtel.