Huawei, a provider of telecommunications equipment, on Monday announced it has signed a five year managed services agreement with Telefónica UK. Under the agreement Huawei will manage planning and implementation of the Telefónica UK mobile core network.
The financial terms of the transaction were not disclosed
Under the new agreement Huawei (Shenzhen, P.R.C.) will be responsible for planning and managing the core transmission, mobile access and core network build in the multi-vendor core network. Huawei is not one of the vendors supplying the equipment.
The agreement includes 56 Telefónica UK employees transferring to Huawei’s managed services business. The employees will be responsible for planning and building Telefónica UK’s core network and will continue to do so once they have transferred to Huawei. An additional 62 contractor employees will also be transferred to Huawei.
Huawei currently has more than 240 managed contracts in place with operators in more than 60 countries, says the company.
According to Victor Zhang, CEO of Huawei UK, this is the companies first major managed services agreement in the UK.
“Huawei works with Telefónica in a number of markets around the world and today’s agreement means we are extending our relationship to the UK,” says Zhang. “Today’s announcement is an important first step in building a world-class managed services capability in the UK. The agreement is a long-term strategic commitment from both Huawei and Telefónica UK.”