Vodafone and Orange outsource network operations

19 Mar 2009

British cellcos Vodafone and Orange will outsource their network operations in a bid to cut costs, and have signed deals with Ericsson and Nokia Siemens Networks (NSN) respectively, Reuters reports. Ericsson has announced a seven-year agreement with Vodafone which will see it provide maintenance and operational support for the latter’s radio access networks across the country. Under the terms of the deal approximately 350 staff will be transferred from Vodafone to the Swedish vendor. NSN meanwhile has signed a five-year deal with Orange that will see it manage, plan, expand, optimize and provide maintenance services for the Orange UK 2G/3G mobile network. Around 470 staff will move from Orange UK, with approximately 230 of those joining NSN, and the remainder moving to a first line maintenance sub-contractor. No financial details for either deal have been released.

In separate but related news, NSN has also revealed it has signed a deal with Orange’s Spanish arm to manage its fixed and mobile multivendor networks. Under a five-year contract, NSN will implement an end-to-end managed services solution for the networks, which it claims will increase network efficiency and reliability.