Nokia Siemens Networks, Deutsche Telekom in partnership for next-gen network

Nokia Siemens Networks and Deutsche Telekom have signed a wide-ranging strategic partnership agreement whereby Nokia Siemens Networks will assume control of Vivento Technical Services (VTS) – a division of Deutsche Telekom’s personnel service provider – and has signed a managed services contract valued at nearly €300 mln over the next five years.

Deutsche Telekom has also selected Nokia Siemens Networks to deliver a range of capital expenditure projects for several T Mobile affiliates in Europe, including next-generation IN (Intelligent Network), valued at up to €150 mln.

With this agreement, Nokia Siemens Networks becomes a major supplier for managed services in Europe. The asset deal is expected to close at the beginning of next year and includes the transfer of VTS assets to Nokia Siemens Networks, as well as additional support from Deutsche Telekom to ensure a successful transition.

With the addition of VTS, Nokia Siemens Networks has the increased ability to address the multi-vendor maintenance, installation and commissioning services market within Deutsche Telekom and with other customers across Germany. Under the agreement, Nokia Siemens Networks will deliver a range of managed services to Deutsche Telekom, including a single point of contact for managed maintenance and systems integration, as well as providing build, operate, care and transfer services for major Deutsche Telekom roll-outs in the next few years.

Deutsche Telekom will support the continued business development of VTS by committing to use its service delivery capabilities, by placing additional service contracts with the company.

In a very fragmented market consisting of thousands of sub-contractors, cost and resource co-ordination are key factors. VTS offers a promising entry point into the German infrastructure services market which is expected to grow annually by 6%, reaching €1 bln by 2010. With VTS, Nokia Siemens Networks will improve its time-to-market and open up growth opportunities by increasing efficiency and building market share in Germany’s managed services market.

As part of the strategy announced by Deutsche Telekom in 2004, close to 2000 VTS employees will transfer in an asset deal for VTS, which will become a wholy-owned affiliate of Nokia Siemens Networks.

Deutsche Telekom AG is one of the world’s leading integrated telecoms companies with more than 111 mln mobile customers, about 38 mln fixed-network lines and 13 mln broadband lines. Fixed-network telephony, broadband Internet, mobile communications and information and communication technology (ICT) solutions are offered under the brands T-Home, T-Mobile and T-Systems.

In the 2006 financial year the group generated revenues of EUR 61.3 bln – almost half outside Germany.