Chinese vendor Huawei has been selected by the UK cellco Hutchison 3G UK (H3G UK), which offers services under the ‘Three’ banner, to manage its core network. According to the Financial Times, the contract between the two companies is estimated to be worth around GBP120 million (USD192 million) over its five-year duration. Under the terms of the deal it is understood that Huawei will deliver service management and operations for H3G UK’s core network, as well as for the cellco’s transport network and information and communication technology applications.
With the contract for the management of H3G UK’s core network having previously been held by Sweden’s Ericsson, the new agreement with Huawei will reportedly see a number of staff transferred from Ericsson UK to work for Huawei’s managed services business. Further, the report claims that H3G UK will take on some of the network management itself, a factor which is believed to have reduced the value of the contract awarded to Huawei when compared to the previous deal with Ericsson.
Commenting on the development, H3G UK’s chief executive Dave Dyson, noted: ‘The decision to select Huawei to manage core network operations follows a rigorous procurement process. We chose the partner that best met our requirements and which matched our long-term vision of how our network should be managed.’