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 SiemensContract with IBM

Deliverables of the contractVendor to provide network capacity-Erlangs- according to the projected requirement of each circle of operation, as mentioned in the contract.Comprehensive end to end management service for supplying, installing, and managing all its hardware and software requirements.

Service ChargesBharti to pay fee according to actual capacity that is been used by customers.IBM receives a share of Bhartis revenues and the percentage of the share decreases as overall revenue increases.

OwnershipOwnership of assets lies with Bharti.Ownership with IBM. Bharti to get complete service.

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

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)

Agreement TenureInitial period of three years subject to renewal by mutual agreement.Initial period of five years, renewable for another five years, total 10 years.

PersonnelBharti personnel carrying out the tasks would be transferred to the vendorBharti personnel carrying out the tasks would be transferred to the vendor