New Network Deals for mmO2

date: April 16, 2002 - source: BWCS

UK mobile operator mm02 has announced it is replacing previous supply contracts, signed by BT, with so-called “strategic partnerships”. Under the terms of the new agreements Nortel and Nokia will be the main suppliers of its broadband mobile network.

The move follows a lengthy six month re-evaluation of mm02’s supply contracts. Nortel Networks and Nokia, which were both signed by BT’s mobile wing prior to its demerger, will be the two major suppliers of GPRS equipment and UMTS third generation mobile hardware to mm02 and its European subsidiaries. The operator has also signed a letter of intent with Ericsson aimed at outsourcing its Dutch mobile network operations.

Nokia has been signed to supply a minimum of 30% of mm02’s 3G radio access network equipment in the UK, Germany and Ireland. The Finnish company will also be able to compete to provide an additional 40% of equipment to these operations. Nokia will remain the main GSM supplier to mm02.

Peter Erskine, the mobile operator’s CEO, stressed that his company will now focus on accelerating the uptake of GPRS services aimed at both business and consumer markets. Erskine also claimed that the company will increase its drive to build the proportion of its data service revenues from “12% to more than 25% over the next three years.”

At the same time, Telfort (mmO2's Dutch business) and Ericsson have signed an initial letter of intent for the outsourcing of network operations, with final contract signature expected in July 2002. The network will remain the property and under the full control of Telfort. Ericsson will take responsibility for day-to-day operations, as well as other tasks such as network planning, design and implementation. Much of Telfort's current network infrastructure was supplied by Ericsson and new arrangements have now been put in place made with Ericsson for the rollout of the future 3G mobile network in the Netherlands.

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