3 and Ericsson sign major managed services agreement

This is the largest managed services partnership contract signed by Ericsson to date and one of the largest ever signed in the industry.

Under the new partnership, 3 will retain ownership of the network and IT assets, as well as responsibility for the strategic direction of the network and IT infrastructure. Ericsson will be responsible for the management, operation and performance of that network and IT infrastructure. A supply of equipment, additional technology and related services, is also part of the future relationship.

The innovative seven-year partnership is the first agreement of its type in the UK. The agreement ensures Ericsson will operate the network to the highest standards, while enabling 3 to manage and control its cost base, thereby enhancing the company's platform for growth.

Carl-Henric Svanberg, President and CEO of Ericsson, said: "We are very proud to be entrusted with the responsibility for the ongoing management of 3's multi-vendor network in the UK. This further strengthens our partnership with Hutchison Whampoa Group. The partnership also means that Ericsson has reached another significant milestone - with this agreement, we will now manage networks that in total serve more than 50 million subscribers worldwide."

As well as taking charge of the management, maintenance and expansion of 3's network and IT infrastructure, Ericsson will be responsible for the ongoing radio network rollout, the maintenance of the existing 6,300 radio sites and the management of the core network and operations centre. www.ericsson.com