Seeking Alpha

Ericsson talking with AT&T/Verizon about managed services deals (updated)

  • Ericsson (ERIC +0.3%) says it's "in discussions" with AT&T and Verizon about deals to manage their mobile infrastructures. Given Ericsson's 7-year managed services deal with Sprint (a smaller carrier) is worth $5B, the size of any contract with AT&T or Verizon could be massive.
  • Ericsson, hungry to cut its hardware dependence by growing higher-margin software and services sales, forecast last November the telecom services market would show a 5%-7% CAGR through 2016. That's better than the 3%-5% CAGR expected for carrier networking equipment.
  • Managed services chief Claude Geha argues a broader trend is afoot among carriers to outsource network management, and points to a new 7-year deal with Greek carrier OTE as proof. Geha suggests the deal creates opportunities for Ericsson do more work for Deutsche Telekom, which owns 40% of OTE.
  • Previous: E-mail suggests Ericsson set to win contract from Neustar
  • Update: Ericsson says it's not in "specific discussions" with AT&T/Verizon about managed services deals.
From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs