Electronics Production |
Ericsson in record deal with 3 Italy
Ericsson and 3 Italy have finalized the due diligence and execution of the managed services contract announced on January 20, 2005. The value of the contract is estimated to EUR 1,6 billion, over five years, making it one of the largest managed services contracts ever signed in the telecom industry.
Revenues will gradually increase over the contract term as the network evolves. Some 750 employees have been transferred from 3 Italy to Ericsson and Ericsson is now managing the operator's multi-vendor network, serving more than 3.5 million subscribers.
Under the agreement Ericsson is responsible for the total management of 3 Italy's multi-vendor 3G-network in Italy. Also included is 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 has assumed responsibility for the ongoing optimization of 3 Italy's considerable amount of network assets in Italy, such as sites and transmission.
As part of the contract the parties 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 for the launch of new consumer multimedia services and applications, such as voice, data and video services. The centre will be owned by Ericsson and 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 regarding the service center will be finalized over the next few weeks.
