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Polish operator Netia Group has signed a four-year managed services agreement with Ericsson. Under the contract, Ericsson is responsible for the maintenance and management of Netia’s networks, as well as supporting the provision of services to the operator’s residential and business users.  

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The renewed contract covers the same range of cooperation as the previous agreement, while expanding its geographical reach to include the Telefonia Dialog and Crowley telecommunication networks acquired by Netia in December 2011. In addition, the agreement covers two main areas: services provision and the transfer of employee contracts, assets and agreements of Netia.


Approximately  190 additional employees will be transferred to Ericsson Poland. Valter D'Avino, vice president and head of managed services, Ericsson, says: "The contract we signed with Netia in 2006 was one of the first worldwide fixed-line contracts. This is the second time we prolonged this managed-services partnership.” Miroslaw Godlewski, president of the management board and CEO, says the move will help his firm deliver effective and integrated handling and management of networks and service delivery.

Operators partnering with a third party organisation for managed services has rapidly become a commonplace. So why are do these operators outsource? Service providers have traditionally outsourced network monitoring operations to third parties because its allows them to control the cost of service delivery and realise operational efficiency by enforcing SLAs with penalties with the management partner.

This model has been expanded into other areas of the operator’s business such as marketing intelligence and planning. To achieve this, new KPIs must be developed to determine how value for the business is achieved. Unlike network monitoring operations, which uses the well established MTTR (Mean time to repair) KPI, planning and market intelligence models need to factor consumer satisfaction and market growth as indicators of performance.

Outsourcing models have advantages over traditional in house management. For instance, the  outsource partner would have experience and be able to apply proven management model techniques  immediately, rather than experimenting with the trial and error approach, which is common with in house management. 

Some global operators have realised that establishing a “cookie cutter” one size fits all approach to service assurance, service management and service delivery, is the best approach for uniform customer experience management, and not only standardise on the procedures and policies, but also stipulate which management tools to be used. These operators are less likely to use third party management services, since they have written a comprehensive service portfolio, which can be deployed in any market.

Smaller operators competing with global brands will often use outsourcing services to remain competitive, since enforcing SLAs with a managed service partner is much easier than effecting change internally within the business, where internal politics plays a major part in the decision making process.

By Angela Sutherland

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