Ericsson Press Releases

Ericsson and Hutchison sign major Managed Services agreement in Australia

Date: Monday, December 2 2002
 

Ericsson and Hutchison have signed a seven-year agreement to
implement an innovative services business model that will deliver
increased efficiency and significant cost savings. The initiative
sets a benchmark for telecommunications networks and associated
services in mobile communications, including the technologically
sophisticated multimedia services environment of 3G. To date, this
signifies the most extensive Managed Services agreement in the
 industry.
 
Under the agreement Ericsson will take care of build-out and
day-to-day network operations, operating Hutchison's 2G (CDMA), 3G
(WCDMA) and paging networks, as well as the services platforms.
Hutchison will retain ownership and full control of its network
assets and continue to have responsibility for strategic design and
planning, as well as equipment purchasing decisions.
 
"The increased technical challenges of 3G called for a new approach
to managing service delivery," said Kevin Russell, Hutchison Telecoms
Chief Executive, Australia." We already had a strong partnership with
Ericsson -- a world leader in network technology -- so it made sense
for us to build on that partnership."
"This initiative will deliver cost efficiencies, without sacrificing
Hutchison control and intellectual property," Mr Russell said.
 
Along with increased efficiency, Hutchison will realize significant
cost savings by leveraging the world's largest telecom services
 organization.
 
"The agreement with Hutchison is pushing the frontiers of the concept
of managed services," said Kurt Hellström, CEO Ericsson. "Ericsson's
unique experience and knowledge in integrating and implementing
telecom equipment in all major technologies reinforces the company's
multi-vendor, multi technology services capabilities."
 
About 240 Hutchison technical and IT staff will be transferred to
Ericsson, to complement the existing Ericsson staff currently devoted
to Hutchison business in Australia.
 
This is the third major Managed Services agreement announced by
Ericsson this year. To date Ericsson has signed more than 35 Managed
Services contracts, far more than any other vendor. Ericsson's Global
Services is a quickly growing business and with its 17 000 employees,
it represents an important part of Ericsson and is the largest
service business in the telecom industry.
 
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries, Ericsson
is helping to create the most powerful communication companies in the
 world.
 
FOR FURTHER INFORMATION, PLEASE CONTACT
 Ericsson
Annika Molander
Press Manager, Corporate Communications, Ericsson
+46 703 15 1142
 annika.molander@lme.ericsson.se
 
Hutchison Telecoms, Australia
Steve Wright
+ 61 2 996 44677
 
About Hutchison Telecoms
Hutchison Telecoms operates national paging and 2G (Orange) mobile
networks and is leading the introduction of 3G mobile services in
Australia, to be marketed under the global brand 3.
3 will deliver the next phase of growth in wireless mobile
communications. It addresses both business and consumer needs for
mobility, flexibility, efficiency, quality of life and leisure.
3 will bring together multi-media services including video calling,
video streaming of sport, news and music clips, photo messaging,
graphic-rich services including games, organiser and location-finder
as well as voice into a portable, immediate and interactive
communications experience.