Tech Shout!

Ericsson has entered into a seven-year managed services agreement with the mobile media company, 3, under which Ericsson will be responsible for managing the 3 network and its IT infrastructure in the UK.

Under the new partnership, 3 will retain ownership of the network and IT assets, as well as the responsibility for the direction of the network and IT infrastructure, on the other hand Ericsson will have the responsibility for the management, operation and performance of that network and IT infrastructure. The agreement also includes the supply of equipment, additional technology and related services.

The agreement will ensure Ericsson that operates the network to the highest standards, while enabling 3 to manage and control its cost base, thereby increasing the company’s platform for growth.

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.”

Fuller continued, “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.”

“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”, Svanberg added.

As part of the agreement, Ericsson will also be responsible for 3’s ongoing radio network rollout, the maintenance of the existing 6,300 radio sites and the management of the core network and operations center. Apart from that the agreement also includes the transfer of more than one thousand 3 employees from the network and IT functions to Ericsson.

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.