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Vodafone And Orange Sign Network Outsourcing Deals

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In a bid to cut more costs, European mobile carriers Orange and Vodafone (NYSE: VOD) have both struck separate outsourcing deals to manage their network operations. Reuters reports while mobile operators once saw their network operation as their core business, they are now convinced that it is more important to provide good services.

Orange, the mobile network brand of France Telecom (NYSE: FTE), is outsourcing its network operations in the UK and Spain to Nokia (NYSE: NOK) Siemens Networks. In the UK, the telecoms service provider, will manage Orange’s 2G and 3G mobile network for the next five years. In Spain, Nokia Siemens manage both Orange’s fixed and mobile networks. Aside from cutting costs, Orange is hoping the deal will provide better coverage and quality of service for its subscribers. As part of the agreement, 230 Orange staff will be transferred to Nokia Siemens and another 240 to a first line maintenance sub-contractor.

Vodafone, meanwhile, has signed a seven year agreement with Ericsson, which will provide maintenance and operational support for its 2G and 3G mobile radio access networks in the UK. The deal also includes the transfer of 350 staff from Vodafone to Ericsson (NSDQ: ERIC).

Neither Orange nor Vodafone disclosed the terms of their respective agreements.

Mar 19, 2009 7:13 AM ET

Posted In: Companies, Vodafone, Countries, Europe, UK

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