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H3G Italia S.p.A. Via Leonardo da Vinci, 1 20090 Trezzano sul Naviglio (MI) Tel: +39 02 44581 www.tre.it |
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Media Release
Milan - 20 January 2005
H3G, the Italian leader of the UMTS with over 2.6 million clients, and Ericsson, announced today the signing of an agreement, to start an innovative business model for network management, which would maximize operative efficiency and quality of the service, whilst delivering a significant cost reduction for H3G.
The agreement sets a new milestone for the Italian market whereby H3G will rent to Ericsson the branch of the company, which includes the planning, operations and maintenance of the telecommunication infrastructure as well as the information systems.
Approximately 760 network and IT technicians from H3G Italy will move over to Ericsson which, in turn, will have these activities under contract for five years. Ericsson will take care of the daily management of the network and information systems, including the operative platforms that supply the services to customers.
H3G Italy will maintain ownership and total control of its network infrastructure, as well as responsibility for technical strategies, and determination of architecture, as well as equipment and system purchasing decisions.
The agreement will provide cost saving benefits for H3G of about 250 million euro over 5 years.
The "due-diligence" process, which started today, is expected to be concluded within the next two months.
H3G's CEO Vincenzo Novari said, "This agreement with Ericsson allows us not only to increase the value of our network and IT assets, the know-how and the work developed in UMTS to date, but also to achieve an improved cost structure and better efficiency in generating the resources necessary for the further development of our business, as well as ensuring the quality desired by our customers."
"Besides this, the project will help to safeguard the future of the people with their know-how and competencies joining Ericsson, as they become part of this global leader in network infrastructures and telecommunication services, which is well-positioned to capture future growth in the global market" Novari added.
Cesare Avenia, Ericsson Italy's CEO added: "The agreement with H3G crowns our commitment over the last two years to the growth of the market of "managed services" in Italy. It confirms our vision regarding market telecommunication evolution and proves Ericsson's undoubted capacity to work in partnership with operators to improve efficiency, offering to its clients the best quality network and managed services".
Ericsson's managed services offering covers the management of day-to-day operations of a customer's network and can also include managed capacity for efficient network build out and on-demand capacity, as well as hosting of applications and content management. With all current managed services contracts combined, excluding hosting, Ericsson is managing networks that together serve over 30 million subscribers worldwide.
3 - Is the commercial brand of H3G, the mobile video company of the Hutchison Whampoa Group in the Italian market. After having won the UMTS license in Italy in November 2000, with the offer of 3,25 billion euros, 3 launched its service at the beginning of March 2003 and aimed for the leadership of the third generation mobile market. Among its shareholders are prominent leaders in Italy and the world, from the sectors of telecommunications, the Internet and new media, publishing and finance. Hutchison Whampoa Limited is the primary shareholder 89,32% of the authorized capital. The other shareholders include S. Paolo Imi, BMI, RCS Mediagroup, Gemina and Tiscali.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at http://www.ericsson.com/press
Contacts:
H3G
Gian Marco Litrico
Media and External Relations Director
Tel. 0039 02 4458 2129
gianmarco.litrico@h3g.it
Ericsson
Doris Sdogati
Head of communication
Phone: +39 06 7258 2668, Fax: +39 06 7258 2547
E-mail: doris.sdogati@ericsson.com
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