Versatel Germany selects Ericsson for managed services

• Up to 95 Versatel employees to join Ericsson
• Versatel adapts operating expenses to flexible model and improves cost structure

Versatel, the leading alternative fixed net carrier in Germany, has selected Ericsson (NASDAQ:ERIC) as exclusive partner to manage the field service for its complete fixed and transmission networks. Up to 95 Versatel employees will join Ericsson in Q4 2011, when the responsibility for the service operations is transferred.

The five-year agreement comprises Managed Services  in the area of field services, maintenance, provision of customer connections, logistics and repair including multi-vendor spare part management and systems support nationwide.

With this cooperation Versatel expedites the company's repositioning to focus on the business customer segment. 

Joachim Bellinghoven, Chief Operating Officer, Versatel, says: "This strategic agreement will allow cost-reductions and a demand-driven adaptation of our operating expenses while improving the quality of our service level for our customers. Thus we can foster customer relationships and improve profitability while also securing the quality of our network.  We are convinced that Ericsson also is a good choice for our colleagues to be transferred. They will be able to demonstrate their abilities and they will find good opportunities for their further career development."

Valter D'Avino, Ericsson Vice President & Head of Managed Services, adds: "Managed Services is a growth area both globally and in Germany. The Versatel employees to be transferred complement our existing services team already serving the largest network operators in Germany. This - as well as economies of scale from global tools and best practices - will bring about the synergies a single operator cannot achieve on its own."

Ericsson employs roughly half of its workforce worldwide, 45.000 people, in services. The partnership with Versatel further strengths Ericsson's managed services footprint in Germany.  Ericsson has several managed services contracts in the country and has already provided Versatel with Microwave transmission capacity since 2010 and has been one of the suppliers to the optical transmission and access network.

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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

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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-layer solutions and 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 800 million subscribers worldwide.