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Stockholm (pte057/19.04.2005/17:15) - Swedish mobile phone manufacturer Ericsson http://www.ericsson.com and 3 Italy have finalised a managed services contract that they announced in January 2005. As the company reports today in a press release on its website, the five-year contract is said to be worth 15 billion Swedish Krone (1.63 billion euros), making it one of the largest managed services contracts ever signed in the telecoms industry. Revenues are expected to gradually increase over the contract term as the network evolves. 750 employees have been transferred from 3 Italy to Ericsson and the Swedish company will now manage the operator's multi-vendor network, serving more than 3.5 million subscribers.
Under the agreement, Ericsson will be responsible for the total management of 3 Italy's multi-vendor 3G-network in Italy. The deal also includes the management of 3 Italy's 3G-multimedia service environment, including the service layer network, as well as management of business support systems such as billing. Ericsson will also be responsible for the ongoing optimisation of 3 Italy's network assets in Italy, such as sites and transmission, the company said. The two companies have agreed to create a service centre that will launch consumer multimedia services for 3 Italy. The "Ericsson Service Centre" will be used by 3 to launch new consumer multimedia services and applications, such as voice, data and video services. According to Ericsson, the centre will launch new services for 3 under a revenue share mechanism. Ericsson will explore and develop new services but also launch new services on the specific input of 3. The agreement on the service centre is set to be finalised in the next two weeks.
"We are very pleased to start this new phase of partnership with Ericsson, where we will benefit from Ericsson's technology leadership and innovation capacity," said Vincenzo Novari, CEO of 3 Italy. "Through this agreement with Ericsson, we can now focus even more on our customers and new attractive services for them, and as a result consolidate our leadership in the 3G market in Italy," he added.
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