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Managed Services

MTS Splits Services Deal 3 Ways

10:25 AM -- The award of three managed services deals by Indian mobile operator Sistema Shyam TeleServices Ltd. , which offers its services as MTS India, shows the managed services market is starting to open up, albeit slightly, for Huawei Technologies Co. Ltd. and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763). (See MTS India Outsources.)

As existing infrastructure suppliers to the startup operator, which has more than 6 million subscribers, the Chinese duo were both handed network managed services deals, along with Ericsson AB (Nasdaq: ERIC). "We appreciate the continuous efforts of our existing strategic partners ZTE and Huawei, and welcome Ericsson on board," noted Sistema Shyam CEO Vsevolod Rozanov. (See ZTE, Sistema Team Up.)

Huawei and ZTE are both keen to build their managed services (as well as their broader professional services) business, so both will take heart that they've been handed these deals, which Sistema Shyam hopes will "set a new standard of network delivery and achieving competitive cost position." (See Huawei Plays Managed Service Catchup.)

Adding Ericsson to the mix will put pressure on the Chinese duo, though. Along with Nokia Networks and to a lesser extent Alcatel-Lucent (NYSE: ALU), the Swedish vendor dominates the managed services market, and so has plenty of experience and resources it can bring to the Sistema Shyam account, giving it the chance to set the standard that Huawei and ZTE will need to meet and, therefore, prove themselves.

It'll be interesting to see if the carrier sticks with three different managed services partners in the medium and longterm, and, if it doesn't, which of the trio will meet the operator's expectations.

— Ray Le Maistre, International Managing Editor, Light Reading

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