Ericsson and Deutsche Telekom enter managed services deal for microwave network

Press release  |  Aug 30, 2007 06:12 (GMT +00:00)

Ericsson and Deutsche Telekom, one of the world's largest incumbents, have entered a six-year managed services partnership. The strategically important contract covers the operation and maintenance of Deutsche Telekom's microwave network in Germany.
As part of the transaction, roughly 200 employees will be transferred from T-Com to Ericsson, the world's leading telecom vendor and service provider. T-Com will transfer its microwave assets and related operation activities to Ericsson. Ericsson will thereby take over full responsibility for the realization and operation of Deutsche Telekom AG's microwave based links in Germany, including planning, deployment, operation and field services.
T-Com will buy capacity from Ericsson as part of an ongoing managed services contract.

Hans Vestberg, Executive Vice President and Head of Business Unit Global Services at Ericsson says: "We are confident that we not only can maintain the high quality of the network while helping reduce costs for our customer, but that we can also improve profitability in the operation of microwave networks over coming years by adding new customers. This agreement will also lay the foundation for our strategy to make managed services a growth area and success story in Germany as well. We welcome the highly qualified new employees from T-Com, whom we will offer attractive career paths in an international environment of a true global player." 

The majority of data traffic in the microwave network today is already transmitted over systems delivered by Ericsson.

The managed services deal with Deutsche Telekom/T-Com underlines Ericsson's leading role in microwave and managed services worldwide and in Germany.

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.  
Ericsson Media Relations
Phone: +46 8 719 6992

About Ericsson's Managed Services offering
Ericsson has the telecom industry's most comprehensive offering of managed services, ranging from designing, building, operating and managing day-to-day operations of a customer's network, to hosting service applications and enablers, as well as providing network coverage and capacity on demand. As the undisputed leader in managed services, Ericsson has officially announced more than 100 contracts for managed services with operators since 2002. In all current contracts for managed services, excluding hosting, Ericsson is managing networks that together serve more than 135 million subscribers worldwide.

About Deutsche Telekom AG
Deutsche Telekom AG is one of the world's leading integrated telecommunications companies with more than 111 million mobile customers, about 38 million fixed-network lines and 13 million broadband lines as of June 30, 2007. In the three strategic business areas, Broadband/Fixed Network, Mobile Communications and Business Customers, more than 240,000 employees worldwide deliver the full range of modern telecommunications products and services from a single source - fixed-network lines, mobile communications and complex IT solutions.
In the 2006 financial year the group generated revenues of EUR 61.3 billion - almost half outside Germany. Active in nearly 50 countries worldwide, Deutsche Telekom is a genuinely international group