Ericsson's (NasdaqGS: ERIC) focus on providing managed services to other service providers continues to pay off as Telefonica Brazil has awarded the Swedish vendor a three-year managed services contract to run its wireline network operations center in São Paulo, Brazil.
Along with running the network operations center, Ericsson will run Telefonica Brazil's core, transmission and ADSL networks. Ericsson will also be responsible for spare parts management. The Swedish vendor is not new to Telefonica Brazil. In fact, the latest deal is an extension of a contract Ericsson landed with Telefonica Brazil to operate and maintain a multivendor fiber network in São Paulo.
With much of its traditional network equipment business sales suffering in recent years, network services have become a major focus for Ericsson. In Q1 2010, Ericsson's managed services sales increased 17 percent year-over-year with 16 new managed service contracts.
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