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Ericsson chosen to develop first MVNO platform in Latin America

Ericsson | April 28, 2011 | Press Release
  • Porto Seguro and Datora choose Ericsson as their partner for its quality, flexibility and innovation track record
  • Ericsson will provide Managed Services, alongside with all software, hardware, implementation and systems integration services involved in the first Mobile Virtual Network Operator (MVNO) in Brazil
  • MVNOs are expected to attract 16 million subscribers in the country

Porto Seguro, one of the largest insurance companies in Brazil, and Datora, a Brazilian multinational telecom company that has been providing innovative solutions for over 17 years, announced that they have chosen Ericsson (NASDAQ: ERIC) for the end-to-end development and implementation of a telecom platform for Porto Seguro Telecomunicações, the first Mobile Virtual Network Operator in Brazil. The new carrier, scheduled to start operations by the end of 2011, plans to offer new services and the benefits of mobile communications to the insurance company’s customers and insurance brokers.

Wilson Otero, CEO at Datora Telecom, says: “We could not have selected a better partner for the first MVNO in the country. Ericsson is an extremely innovative company, which has shown interest in participating in this project since the beginning of our talks. Furthermore, Ericsson is a leader in the ICT industry and is recognized for the high quality of its services, software and hardware.”

Italo G. Flammia, TI director of Porto Seguro explains: “Porto Seguro Telecomunicações was established to optimize telecom internal costs inside Porto Seguro insurance company, and also to explore the possibility of convergence with the insurer’s products and offer mobility to their customers and brokers”. The company today insures 8.5 million items, of which 3.8 million are cars.

“Ericsson will supply all software and hardware for the MVNO platform and will customize all the comple¬mentary solutions. In addition to flexibility and agility, Ericsson’s vast international MVNO experience was an important factor for choosing the partner”, comments Flammia.

Ericsson supports the MVNO business through its consulting and systems integration capabilities, including integration of operational and business support systems (BSS & OSS), market analysis, business-modeling, network and systems design, implementation and launch strategies. Ericsson also provides support, operation and maintenance as part of managed services for the full ICT environment.

Virtual mobile operators will generate thrilling new opportunities, especially for large companies that seek to promote innovation, convergence of products and services with mobility, and to generate new revenue and customer loyalty. Market analysts forecast that MVNOs will attract 16 million subscribers in the country and US$ 1 billion in revenues in the next five years.

Jesper Rhode, Head of Innovation for Ericsson in Latin America, says: “Ericsson is honored to be chosen by Porto Seguro Telecomunicações. All MVNO partnership business models look different depending on the market, what the company wants to get out of the partnership, their brand positioning, conditions and capabilities. Our MVNO partnership offering can be customized to each situation.”

Ericsson plans to expand its partnership with Datora Telecom, empowering Datora’s MVNA (Mobile Virtual Network Aggregators) operation to support market and also enable MVNO projects for companies of all sectors.

About Ericsson

Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 1 billion subscribers and has a leading position in managed services. The company’s portfolio comprises of mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of “to be the prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 75,000 employees generated revenue of SEK 209 billion (USD 32.2 billion) in 2008. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York. www.ericsson.com

 

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