Ericsson’s Biggest Contract
Swedish telecoms maker Ericsson says it has signed its biggest managed services deal ever, with the British mobile operator 3 UK, owned by Hutchison Whampoa.
Ericsson gave no figures for the value of the contract, but its largest ever single deal previously was a five-year managed services agreement with 3 in Italy for 1.9 billion dollars. One analyst estimated the new seven year deal with 3 UK to be worth around 2.5 billion dollars.
Managed services, where Ericsson runs the network on behalf of the operators, is seen by the Swedish company as a key growth area, along with its traditional business of selling radio and transmission equipment.
Trading in Ericsson shares was closed on the Stockholm exchange before the announcement. When trading resumed the value of Ericsson stocks jumped by 4 percentage points.