Vodafone outsources mobile networks

Nokia wins $297 million deal

Nokia announced it has signed a $297 million, seven year contract with Vodafone Australia to supply engineering, operations and maintenance for its mobile networks.

In the deal, Nokia will manage Vodafone's GSM, 3G and HSDPA networks by providing network design, engineering, and fieldwork, which extends the current outsourcing relationship between the companies established in 2004.

Vodafone spokesman Greg Spears said there are no redundancies resulting from the deal, as its 51 affected employees and contractors have been employed under Nokia's Services unit.

Vodafone Australia CEO Russell Hewitt said the deal, which will begin next year, will help with cost cutting and quality control.

"It delivers cost efficiencies and allows us to control the quality and technical direction of our networks," Hewitt said.

"Outsourcing the management of the networks to Nokia makes good business sense for us."

The deal furthers Vodafone's global outsourced business with the announcement last month that IBM and Electronic Data Systems (EDS) will run application development and maintenance for its billing and CRM software.

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