Ericsson Expands Managed Services to Russia through Five-Year Contract with VimpelCom

Ericsson has announced its first major managed services contract in Russia with mobile phone service provider VimpelCom. The five-year agreement will have Ericsson manage network operations at more than 10,000 sites for VimpelCom, and the company will also oversee more than 10,000 km of optical transport cables.

VimpelCom is one of the 10 largest integrated telecommunications services operators in the world, and the contract signifies a major move in the managed services space for Ericsson. It covers management of both fixed and mobile networks covering 41 cities in VimpelCom's extensive network, with reaches across Siberia and the Urals in Russia.

More than 400 VimpelCom employees spread over 41 locations will be transferred to Ericsson in April as part of the contract. Ericsson will handle network operations and field maintenance for active and passive network components for the service provider's mobile, fixed and transport networks through the agreement. This is expected to bring improved network quality and end-user experience to VimpelCom subscribers.

Headquartered in Amsterdam, VImpelCom has more than 212 million mobile subscribers throughout the world. In addition to Russia, the company operates throughout Europe, the Middle East, Africa and Canada.

"This agreement meets VimpelCom's long-term plans in strategic programs to increase operating efficiency," said Anton Kudryashov, general director of VimpelCom. "The transfer of network maintenance and support to Ericsson will allow us to more effectively optimize costs and network management. Similar projects have already become standard practice in the world, and we are actively supporting this trend, as we see the effectiveness of this model with examples of global operators. We are confident that the knowledge and experience of Ericsson in the extended network service and support, will allow us to maximize our focus on business development, improve the quality of services for our customers and provide additional quality services."

"This is our first major managed services contract in Russia," added Valter D'Avino, head of managed services, Ericsson. "With Ericsson managing the operations of its network, VimpelCom will be able to reduce its operational expenditure and focus even more on providing innovative solutions for its customers."