updated 12/15/2010 2:12:00 AM ET 2010-12-15T07:12:00

* Seven-year managed services contract for data center consolidation and modernization of IT infrastructure

* Faster delivery of new services and enhanced quality with better flexibility and more capacity in IT

* IT hardware, software and energy costs decreased by up to 50 percent

3 Italia has chosen Ericsson (NASDAQ: ERIC) to modernize its IT infrastructure and systems including hardware and software, IP connectivity, operating systems and storage.

With more than nine million 3G subscribers, 3 Italia delivers a wide range of communication services such as voice, video, internet access, mobile TV and entertainment. With Ericsson's help, Italians will get new services even faster as 3 Italia's IT environment is improved, resulting in strengthened data capacity with more flexibility and better quality of service.

The contract covers data center consolidation with hardware modernization, upgrade and consolidation of 3 Italia's software application domains, as well as transformation of operations and business support systems (OSS/BSS), for example systems for billing and customer relationship management. The new agreement builds on the managed services partnership established between 3 Italia and Ericsson in 2005.

3 Italia's current three data centers will be consolidated into two, located in Rome and Milan. This, combined with the introduction of a new virtualized software architecture, housing all of 3 Italia's applications and allowing the operator to use its total IT infrastructure more efficient, means the operator can lower its energy and IT hardware and software costs by 40 and 50 percent respectively. Ericsson will also manage, maintain and upgrade the infrastructure until 2017.

Antonella Ambriola, CTO 3 Italia, says: "Ericsson has been our partner in building our nationwide 3G network in Italy. Now, they are also taking responsibility for improving our IT infrastructure, including the systems we build our services offering on. With the relationship we already have today, we are confident Ericsson will contribute in the same positive way as an IT consultant as they have as a network infrastructure supplier."

Valter D'Avino, head of Managed Services, Ericsson says: "By strengthening our offering within the IT business we move into an arena where operators previously have not seen us as a natural partner. With 3 Italia we are not only taking on a new leading role to modernize and improve their IT infrastructure, we are doing it with the same ambition we always do in the relationship with our customers - we are there to help develop and expand their business. This gives 3 Italia the ability to further focus on their customers while we take on the responsibility to manage their IT operations."

The relationship with 3 Italia and Ericsson dates back to 2001 when the operator selected its UMTS suppliers. In 2005, the two parties signed one of the largest managed services contracts in the telecom industry. On June 5, 2009, 3 Italia awarded Ericsson a network transformation deal to upgrade its WCDMA/HSPA network, extending the managed services deal with five years until 2014.

Notes to editors:

Press release from June 5, 2009, "Ericsson and 3 Italia sign exclusive network transformation deal and extend managed services agreement":http://www.ericsson.com/news/1320469

Ericsson Global Services press information:

http://www.ericsson.com/ericsson/press/facts_figures/doc/BUGS_Press_Backgrounder_Q2 _2010.pdf

Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the "prime driver in an all- communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

  www.ericsson.com
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About 3 Italia

3 Italia, controlled by the Hutchison Whampoa Group, won a UMTS license in Italy in 2000, launched its services in 2003. It is now the leader in the UMTS market in Italy, thanks to a wide offering of multimedia, video communication and internet services, as well as entertainment, music, information, cinema, sport and TV on the move.

About Ericsson Consulting and Systems Integration

More advanced end-user services and the need to fulfill consumer expectations, combined with market liberalization, create pressure to transform the world of communication. To remain competitive, operators and service providers need to take a holistic approach to processes, people, tools and technology when transforming and modernizing their businesses and operations. Ericsson has more than 10,000 consulting and systems integration experts providing services in the areas of business strategy, operational efficiency, OSS/BSS transformation, competence development and network technology modernization. Ericsson delivers more than 1300 consulting and systems integration projects each year in multi- vendor and multi-technology environments to operators, governments, utilities and transport organizations. These range from end-to-end transformation projects to single solution assignments.

Press release PDF: http://hugin.info/1061/R/1472602/409206.pdf

Photo Valter D'Avino: http://hugin.info/1061/R/1472602/409209.jpg

Photo #2 Valter D'Avino: http://hugin.info/1061/R/1472602/409210.jpg


This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1472602]

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