Ericsson will take over the running of Telefónica’s pre-paid billing operations from October, in a seven-year deal covering 100 million subscribers.
The vendor has teamed up with Spanish IT firm Indra to take control of Telefónica’s billing systems, including 500 staff in Spain and Brazil responsible for developing and operating the set-up.
Ericsson said the deal, which covers 20 Telefónica Group markets, will boost its position in systems integration, BSS and OSS markets.
“The partnership with Indra will also open the door for new business opportunities, thanks to their leadership in IT solutions and IT systems integration,” Magnus Mandersson, head of business unit global services at Ericsson, said.
A Telefónica spokesperson said pre-pay is a key part of the telco’s global offerings, and that the deal “offers a unique opportunity” to develop the billing set-up.