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6th December - The mobile media company, 3, and Ericsson
today announced they have entered into an exclusive managed
services partnership. Under the agreement, Ericsson will be
responsible for the management of the 3 network and its IT
infrastructure in the UK.
This is the largest managed services partnership contract
signed by Ericsson to date and one of the largest ever signed
in the industry.
Under the new partnership, 3 will retain ownership of the
network and IT assets, as well as responsibility for the strategic
direction of the network and IT infrastructure. Ericsson will
be responsible for the management, operation and performance
of that network and IT infrastructure. A supply of equipment,
additional technology and related services, is also part of
the future relationship.
The innovative seven-year partnership is the first agreement
of its type in the UK. The agreement ensures Ericsson will
operate the network to the highest standards, while enabling
3 to manage and control its cost base, thereby enhancing the
company's platform for growth.
Ericsson has managed services partnerships already in place
with 3 in Australia and Italy, where it manages 3's multi-vendor
networks and service delivery environments and in Sweden where
it manages 3's messaging platform. This new contract delivers
further synergies for both parties.
Bob Fuller, CEO of 3 UK said: "We are very pleased to be
announcing this innovative partnership with Ericsson. This
is an important step in the implementation of our strategy
and means we can focus on our core business of providing a
convergence of communications, entertainment and information
to our customers. 3 will continue to lead the development
of 3G services."
He added: "Ericsson is a managed service specialist and a
long-term and trusted partner for 3. This agreement is not
just the most efficient way to own and manage infrastructure
of this kind, but also the way to deliver the best possible
service to our growing customer base. We are delighted that
Ericsson will be bringing its extensive management expertise
to the 3 network."
Carl-Henric Svanberg, President and CEO of Ericsson, said:
"We are very proud to be entrusted with the responsibility
for the ongoing management of 3's multi-vendor network in
the UK. This further strengthens our partnership with Hutchison
Whampoa Group. The partnership also means that Ericsson has
reached another significant milestone - with this agreement,
we will now manage networks that in total serve more than
50 million subscribers worldwide."
He went on to say: "This is proof of our managed services
leadership. We see a growing trend towards managed services,
enabling operators to become more successful in a very competitive
marketplace. Our extensive experience and expertise, gained
from more than 55 managed services contracts with operators
around the world, allows us to offer significant cost savings
and optimized network quality through global economies of
scale and best practice methods, systems and tools."
As well as taking charge of the management, maintenance and
expansion of 3's network and IT infrastructure, Ericsson will
be responsible for the ongoing radio network rollout, the
maintenance of the existing 6,300 radio sites and the management
of the core network and operations centre.
Over one thousand 3 employees from the network and IT functions
will be transferred to Ericsson. Ericsson will benefit from
one of the most experienced 3G technical teams in the world
and the focus will be on developing and growing the roles
that are transferring.
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