New Delhi: Videocon Telecom has tied up with Chinese equipment firm Huawei Technologies for rolling out 4G network in six out of its 7 service areas.

"Videocon Telecom is rolling out LTE-ready Packet Core network from Huawei in 6 telecom circles in India. This network will provide a larger data coverage and reduce the overall capex and opex leading to an improved profitability and lower costs to end users," Videocon Telecom's Director and CEO Arvind Bali said in a statement.

Both companies had earlier run into dispute over payments when Videocon Telecom lost its 21 licences along with 101 others after the Supreme Court judgement in February 2012. Now, the issue has been resolved amicably.

"We hold a global leadership position in Packet Core networks and are very happy to partner with Videocon Telecom to bring this cutting-edge technology," Huawei India CEO Cai Liqun said.

Last year Videocon Telecom had announced to explore partnership possibility with Nokia Solutions Network (formerly Nokia Siemens Network) but finally opted for the Chinese equipment maker.

NSN manages Punjab operations of Videocon where the mobile service provider firm has permit only for 2G services at present. Videocon has permit to roll out 4G services in Bihar, Gujarat, Haryana, Madhya Pradesh, Uttar Pradesh East and West where it won spectrum afresh in November 2012.

Videocon at present operates only in 4 service areas and out of which three (Haryana, Gujarat and Madhya Pradesh) are managed by Huawei for its 2G services.

The company has registered fastest growth rate in its subscriber over the period of last eight months. Videocon has 5.28 million subscibers at the end of April, as per industry data. --- PTI