Telecom Lead Europe: Mobile infrastructure provider Ericsson
is facing challenging conditions in managed services market in the U.K.
Two major managed services contracts are up for renewal –
deal for managing 3’s core network and managed services contract for Mobile
Broadband Network. Main competition will be between Nokia Siemens Networks,
Ericsson and Huawei.
According to ABI Research, Ericsson has dominated the managed services market in the
U.K. since winning the first contract with 3 in 2005.
Read: Top 5 telecom network managed services equipment vendors
The seven-year contract for managing 3’s core network
ends in 2012, and 3 has sent an RFP to several invited vendors. The managed
services contract for Mobile Broadband Network (MBNL), the 3G network sharing
joint venture between 3 and T-Mobile, is also a big opportunity. Ericsson has
had most of MBNL’s managed services business, but the contract ends this year
and MBNL has sent an RFP to several invited vendors.
Aditya Kaul, practice director, mobile networks, ABI
Research, said instead of awarding a contract to multiple vendors as is common
in some countries, the network operators in the UK will probably award each
contract to one main contractor, who will then sub-contract portions of the
Ericsson is in a very strong position based on
established relationships with the operators in managed services, but Nokia
Siemens Networks is well positioned to get a big piece of the business, and it
is always possible that a low bid by Huawei might get some consideration from an
operator facing cost pressures.
NSN has been the prime contractor for Orange’s managed
services in the U.K. and provides part of the managed services for
MBNL; NSN is also the equipment supplier for MBNL, and has supplied
equipment to most of the other UK operators too. Huawei, although a newcomer in
the UK managed services business, recently won a five-year managed services
contract with TelefÃ³nica O2 UK, and is looking for additional opportunities.
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