Under the four-year agreement, Ericsson will supply radio access, microwave transmission and core network equipment, including Ericsson's mobile softswitch solution.

Ericsson will also be responsible for network deployment and integration, and managed services, including network and field operations. The rollout would begin shortly, with commercial launch rescheduled for May 2008, Idea Cellular said.

Idea Cellular Managing Director Sanjeev Aga said: "This move extends our long-running relationship with Ericsson. It will provide us with a state-of-the-art network in Mumbai. It ensures that we are well-positioned for future network development and addresses increasing customer demand for mobile services in a sustainable and cost-efficient way."

The mobile softswitch solution will help Idea Cellular move over to a completely Internet protocol-enabled network, and support cost-effective network operations for mobile voice services. This will ensure the smooth launch of next-generation multimedia services.

Ericsson will also provide a real-time charging system for traditional telecom services and new multimedia services.

The solution is part of Ericsson's revenue management offering, helping operators improve marketing capabilities, reduce costs and help users control spending.