Ericsson (NASDAQ:ERIC) and Denmark's largest operator, TDC, have signed the largest full-scope managed services contract in the Nordic region. It is the first time an incumbent operator has entered a managed services agreement with such a broad scope. The strategic partnership will see Ericsson manage, develop and modernize TDC's entire mobile network.
Under the seven-year agreement, Ericsson will be responsible for the management, operation, network design and performance management of TDC's mobile network, including field operations. Ericsson, through a single-source contract, will also provide GSM/WCDMA radio access and common core network equipment, and a wide range of services to support network expansions, including HSPA upgrades.
Ericsson will initially replace TDC's existing radio equipment, including more than 1000 base stations, to implement a single-vendor network. Ericsson will also provide a comprehensive range of professional services, such as network deployment and systems integration.
As part of the agreement, about 220 skilled TDC employees will be transferred to Ericsson, further strengthening Ericsson's services leadership and existing services capabilities. The employees will be offered a position in one of the fastest-growing business areas in Ericsson. The contract will come into effect in March 2008.
Jens Alder, CEO, TDC, says: "With Ericsson as our strategic partner, we are well placed to build on our leading market position. This contract, the first of its kind for TDC, will allow us to focus on our core business and deliver world-class services to our customers."
Carl-Henric Svanberg, President and CEO, Ericsson, says: "We are proud to have been chosen by TDC and entrusted with the end-to-end management, operation and development of the entire mobile network. We will certainly do our utmost to deliver world-class technology services to TDC's customers in Denmark."
Ericsson's comprehensive managed services offering streamlines network operations and boosts operator competitiveness. It increases cost efficiency and enables shorter time to market for new services while delivering first-rate service to customers.
Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 189 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges.
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TDC is the leading provider of communications solutions in Denmark and has a strong Nordic focus. TDC is organized into four main business lines in the Nordic region: Business Nordic, Fixnet Nordic, Mobile Nordic and YouSee. TDC's activities outside the region comprise Sunrise, the leading Swiss telco, and HTCC, the leading Hungarian telco. TDC became partially privatized in 1994, and fully privatized in 1998. Nordic Telephone Company ApS owns 87.9 percent of shares, with the remainder held by individual and institutional shareowners. For more information, visit www.tdc.com.
About Ericsson's Managed Services offering
Ericsson has the telecom industry's most comprehensive managed services offering. It ranges from designing, building, operating and managing day-to-day operations of a customer's network, including end-user services and business support systems, to hosting service applications and content, 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 worldwide since 2002. In all current managed services contracts, excluding hosting, Ericsson is managing networks that together serve more than 185 million subscribers worldwide.