Romtelecom and Cosmote have selected Ericsson to manage their respective fixed and mobile networks after signing a seven-year managed services agreement.

The two Romanian operators are owned by Greece-based OTE.

Ericsson said it will assume responsibility for network operations and maintenance of wireline and wireless access, transmission, core and IP domains, as well as network operations for OSS.

Around 730 employees will join Ericsson's Global Services division as part of the deal.

Nikolai Beckers, CEO of Romtelecom and Cosmote Romania, commented: "The managed services concept represents a business model aimed at improving focus on core activities while obtaining increased cost efficiency.

“Our continuous endeavour to operate better, faster and more efficient, while offering customer excellence, determined us to go with this option.”

Jean-Claude Geha, VP and Head of Managed Services at Ericsson, said Romania is “a very important market” for the company, given it has one of its four Global Service Centres located there.

Ericsson has over 300 managed service contracts in 100 countries, amounting to a customer base of one billion.

In the first three months of the year, the vendor signed 16 managed service contracts but revenues from such deals fell two percent as the number of contracts was down year-on-year.

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