Ericsson gets MBNL contract extension boost

The network-sharing joint venture between Three and EE in the UK has given Ericsson some much needed good news with the announcement that it is extending its managed services contract by two years.

MBNL has elected to take the contract, which covers the likes of operations, network performance and field services, up until May 2020.

Ericsson has had the contract since 2009 and claimed growth in the NPS of both Three and EE was partly to thank for the contract extension.

Pat Coxen, Managing Director of MBNL, said: “We have been working with Ericsson as our managed services partner for many years – in fact, since MBNL was formed.

“As a result of focus, dedication, hard work and improvements, we have together achieved record-high levels of network performance to satisfy our shareholders.

“Based on this achievement, we feel it’s the right time to extend our business relationship with Ericsson for two more years.”

Peter Laurin, Head of Business Area Managed Services at Ericsson, added: “Going forward Ericsson will continue to invest in automation to increase network quality further and shorten lead times, while also implementing analytics to measure and enhance the subscriber experience.”

Managed contracts are a key focus area for the Sweden-based vendor as it looks to turn around its financial performance.

In October it said it had exited, renegotiated or transformed 13 under-performing contracts as sales of network services are down from SEK52 billion to SEK47 billion in the first nine months of the year.

Read more: Ericsson warns industry will be hit by China slowdown, as struggles continue

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