Ericsson signs managed services deal with Telefonica

Ericsson announced a new managed services deal with Telefonica for AI-powered network operations in the UK, Colombia, Peru, Ecuador and Uruguay.
TelefonicaEricsson will provide services including day-to-day monitoring and service desk, change management, and problem and incident management.

The strategy of Telefonica is to enhance use of AI-based automation for network operations, said Juan Manuel Caro, global director of Operations & Customer experience, Telefonica.

The statement from Ericsson did not reveal details about the managed services deal for other regions of Telefonica.

Telefonica’s leadership team has selected Ericsson’s managed services for UK business, which contributes 14 percent revenue to Telefonica. Mark Evans is the CEO of Telefonica UK.

Telefonica UK had a Capex of €1.464 million (+7.1 percent) in 2018 due to its investments in network capacity and customer experience. Telefonica UK revenue was €6.79 billion (+5.4 percent) driven by smartphone sales, customer spending as well as growth in MVNO and Smart Metering Implementation Programme (SMIP) revenues.

Telefonica did not consider Ericsson for Brazil (21 percent revenue contribution), Spain (26 percent contribution) and Germany (15 percent contribution).

Telefonica Hispam Sur, which includes Argentina, Chile, Peru and Uruguay, generates 14 percent of Telefonica’s total revenue. Ericsson’s managed services will be supporting Peru and Uruguay which are part of Telefonica Hispam Sur business group.

Telefonica Hispam Sur, headed by Bernardo Quinn, made investment in fibre and 4G networks expansion. Revenue was €6.677 billion (+9.6 percent) in 2018. Capex was €1.116 billion (+8 percent) due to the deployment of fibre and 4G coverage expansion.

Telefonica Hispam Norte, which includes Colombia, Mexico, Venezuela, Central America and Ecuador, generates 8 percent of Telefonica’s total revenue. Ericsson’s managed services will be supporting Colombia and Ecuador which are part of Telefonica Hispam Norte group.

Telefonica Hispam Norte, led by Alfonso Gomez Palacio, reported revenues of €4.075 billion (–1.2 percent). Capex was €668 million (–26.8 percent) mainly on fixed and mobile network expansion.

Telefonica in 2018 selected Vertiv to boost energy savings through infrastructure solutions. Vertiv provides Energy Savings as a Service (ESaaS) across Telefonica’s core and access sites in Europe and America.

Baburajan K