Ericsson signs managed services partnerships

19 May 2011 | Kavit Majithia


4G wireless broadband provider Clearwire has partnered with Swedish based vendor Ericsson in a 7 year managed services agreement for Ericsson to manage Clearwire’s 4G network.

Clearwire believes the partnership will reduce operational costs and realize operational efficiencies in the US market, with Ericsson responsible for network engineering, operations and maintenance for Clearwire’s core transmission and access networks. The broadband provider maintains it will still be the primary point for interaction with customers, wholesale partners and vendors, and will retain ownership of its network access and continue to address future development in its service.

“Clearwire’s effort to reduce costs and maximize efficiency while delivering a high quality mobile broadband service to our customers extends to all parts of our business,” said Erik Prusch, COO at Clearwire. “By engaging Ericsson we can achieve those objectives and benefit from their extensive global expertise and best practices developed while serving clients around the world.”

Ericsson entered into a similar agreement in 2009 with Clearwire’s largest shareholder and wholesale partner Sprint. The vendor claims to have invested over $1 billion in equipment and practices to provide successful network management processes, and controls networks for operators that serve over 800 million subscribers worldwide.

“The responsibility for network engineering, operations and maintenance of one of the leading mobile broadband networks in North America is one that Ericsson takes very seriously,” added Angel Ruiz, head of Ericsson’s North American operations.

"This managed services partnership is the next logical step for both Clearwire and Ericsson, one that will have significant near -term and long-term benefits for Clearwire's employees, customers, retail distributors and investors," added Berge Ayvazian, Senior Consultant with Heavy Reading. "It also represents Ericsson's second managed services contract in the U.S., building on the network advantage agreement that has already delivered major operational and economic benefits for Sprint."

In it's home market, Ericsson has signed a similar three year contract with Telenor Sweden to provide managed services, as the Swedish based operator outsources a range of its operations to the vendor.

The fundementals of the contract sees Ericsson develop Telenor Sweden’s field services, including field maintenance and implementation services across its fixed and mobile networks. Ericsson hopes that this deal will give the company experience in the service area and reinforce its footprint in Sweden.