Ericsson in managed services deal with Hanoi Telecom

Swedish vendor Ericsson has signed a contract with Vietnamese incumbent Hanoi Telecom which the firms say is the largest single telecoms deal that has every been struck in the nation.

Worth $450m, the deal is built around a three-year managed services contract that will see Ericsson assume complete control of the management, operation and network design of HT’s mobile network. During this time Ericsson will also oversee the migration of HT’s network from CDMA to GSM/EDGE technology.

Commercial launch is scheduled for the end of 2008.

Dr. Pham Ngoc Lang, Chairman of Hanoi Telecom, said: “This strategic partnership with Ericsson is a first in Vietnam. It will provide us with a competitive advantage by allowing us to focus on our core business and help position us for rapid nationwide expansion.”

Informa Telecoms & Media has forecast that the managed services market will be worth $18.46bn by 2012, and Ericsson is the clear leader in the sector. In March this year the Swedish player claimed to be supplying service to 185 million end users across the world through its managed services portfolio. The firm’s Global Services unit currently accounts for one third of Ericsson’s total revenues.