Swedish telecom equipment maker Ericsson today said it has bagged a contract worth USD

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1.3 billion from India's Bharti Airtel for expanding and upgrading the mobile operator's network.

"Ericsson will expand and upgrade Airtel's network in 15 of India's 22 telecom circles," the Swedish firm said in a statement.

The agreement would enable Airtel to put in place a converged network and expanded coverage in rural India and help its users to enjoy an enhanced voice quality and faster data access.

The deal would further strengthen the 15-year strategic partnership which the two firms already share, it said.

"Airtel is poised to spearhead next telecom revolution in India and take the 2G experience to greater heights. In this partnership, we will set a new benchmark for the world in terms of network size and quality, types of services and end-user experience," Ericsson President and CEO Hans Vestberg said.

The expansion covers introduction of some of the latest technologies within the wireless world which would bring better quality voice to end users, support more users in using one base station and other new services.

"Our pioneering model of aligning with strategic partners who share our vision and bring in world-class experience and expertise to execute our plans has helped us focus on our customers and market place," Bharti Airtel CEO-India & South Asia Sanjay Kapoor said.