STOCKHOLM, Sweden-L.M. Ericsson signed an exclusive managed services contract with H3G Italy for the overall management of H3G Italy’s third-generation network, which has more than 2.6 million subscribers.
The value of the contract was not disclosed, but Ericsson noted the deal’s importance. “This is the largest managed services contract we have signed to date and also one of the largest agreements ever signed by Ericsson,” said Hans Vestberg, an Ericsson senior vice president. “The deal further strengthens our global leadership and reinforces the trend toward managed services, in which operators and vendors work as partners to reduce costs, improve network quality, optimize assets and bring new services to market as quickly as possible.”
Ericsson said the agreement will deliver increased efficiency and cost savings of about $323 million in five years for the Italian carrier, which is owned by Hong Kong-based Hutchison Whampoa Ltd.
The contract contains asset optimization and management of H3G Italy’s 3G multimedia service environment, including management of the service layer and business support systems.
The agreement includes transferring about 750 employees from H3G Italy to Ericsson. The due diligence phase starts immediately and is expected to be concluded within two months. Ericsson will assume responsibility during the second quarter.
