Ericsson Wins in Mexico

ESPOO, Finland -- Ericsson (NASDAQ:ERIC) will provide a comprehensive spare parts management service for the GSM network of Telefónica Mexico. Ericsson will manage multivendor spare-parts supply and logistics for radio access, transmission and core network.

The multi-year contract also includes ecology management for the disposal of hardware units, as well as logistics, deliveries and service performance reporting to help increase the operator's efficiency. These services components will be applied to Ericsson equipment as well as third-party product vendors of transmission and power. This will reduce the complexity in Telefonica's multivendor support environment, as Ericsson will act as single interface towards other vendors.

Telefonica will benefit from cost reduction in logistics and management as well as improved spare parts handling procedures. This will enable Telefonica to focus more on its core business of delivering innovative solutions to their customers.

The deal builds upon Ericsson's longstanding relationship with Telefónica and leverages its local presence in Mexico.

Jorge Moreno, Vice President, Chief Technology Officer (CTO), at Telefónica, says: "Ericsson is a trusted partner and this move allows us to improve network performance and reliability while simultaneously reducing our overall operational costs via a customized solution."

Ericsson AB (Nasdaq: ERIC)