Ericsson selected by Vodafone Netherlands to manage core and transport network

Ericsson (NASDAQ:ERIC) has signed a five-year contract with Vodafone Netherlands for a managed services cooperation in the country. As of June 1, Ericsson takes over all engineering, implementation and operational activities in Vodafone Netherlands’ multivendor core and transport network. As a result, 97 Vodafone Netherlands employees will be transferred to Ericsson.

The employees will be located at the office in Stein, in the South Limburg region, from where Ericsson already performs other activities that were taken over from Vodafone Netherlands last year. (See announcement, www.ericsson.com/ericsson/press/releases/20060329-1041758.shtml )

Hans Vestberg, Executive Vice President and Head of Ericsson’s Global Services, says: “We are extremely proud and delighted that Vodafone Netherlands has chosen us as a partner for managed services for their core and transport network activities. This announcement, in combination with the recent ones related to operators in the Northern Europe markets, shows great momentum for managed services and that operators worldwide have confidence in our know-how to provide high-quality network services and attractive work conditions for transferred employees.”

John Samarron, CTO of Vodafone Netherlands, says: “Vodafone Netherlands is increasingly evolving from a technically oriented company to customer-services oriented company. By transferring responsibility and existing resources for the core and transport part of the network, we are convinced that we will be able to capture synergies with Ericsson, and that the quality of our core and transport network will be further enhanced. Moreover, the shift to a partnering model allows us to focus on additional elements of the value chain that will enable growth and new product introduction. It also brings yet another growth business to the region of South Limburg.”

Once implemented, the five-year contract will enable Vodafone Netherlands to lower operational expenses, thereby enhancing the company’s platform for growth, while Ericsson will provide top-quality network performance to Vodafone Netherlands’ customers.