Ericsson and Brasil Telecom have signed a three-year contract, under which Brasil Telecom has outsourced its fixed network operations to Ericsson in the region of Rio Grande do Sul (southern Brazil). Ericsson has already taken over a couple of hundred employees and the responsibility for the daily network operations and maintenance of the network.

"We are very pleased with the outcome and performance of the operation so far. This has improved the efficiency and is saving operational costs for Brasil Telecom," says Peter Källberg, President, Ericsson Brazil. "By outsourcing to a telecom specialist like Ericsson, Brasil Telecom can focus more on their core business, that is - offer it's customers the services they want."


The contract includes no less than 34 key performance indicators that measure the performance of the operation. After the handover to Ericsson the performance level has improved in several areas.


"The agreement reconfirms Ericsson's clear leadership in the fast growing global market for Managed Services," says Karl-Henrik Sundström, Head of Global Services, Ericsson. "It is the biggest Managed Services agreement so far for Ericsson in Latin America and includes equipment delivered by several competing vendors. This proves Ericsson's solid competence in managing complex multivendor environments."


This is the second major outsourcing agreement announced by Ericsson this year, which further confirms the strong trend among operators to use outsourcing as a way to reduce cost and improve service. To date Ericsson has signed 35 Managed Services contracts, far more than any other vendor.