Ericsson wins breakthrough China services deal

Nicole McCormick
20 Jul 2010
00:00

Ericsson has landed two major network deals in Asia-Pacific, including a ground-breaking services contract in China.

In a three-year deal – its largest ever China services contract - Ericsson will exclusively manage and maintain China Mobile’s 22,000 2G/3G base stations in Hebei province.

Ericsson China president Mats Olsson said the agreement showed China Mobile Hebei's “trust” in its managed services capabilities.

Managed services has been the biggest growth area for Ericsson and other global network vendors in the face of weakening equipment sales – but not in China, where carriers have been reluctant to outsource network management.

Olsson toldFT.com this was because it was difficult for state-owned telcos to cut headcount.

Ericsson’s services business grew 15% last year, yet Asia-Pacific accounted for less than a quarter, compared with more than a third of network equipment sales, FT.com noted.

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