Ericsson will take over the running of Telefonica’s pre-paid billing operations from October, in a seven year deal covering 100 million subscribers.
The equipment vendor has teamed up with Spanish IT firm Indra to take control of Telefonica’s billing systems, including 500 staff in Spain and Brazil responsible for developing and operating the set-up.
Ericsson said the deal, which covers 20 Telefonica Group markets, will boost its position in systems integration, BSS and OSS markets.
“The partnership with Indra will also open the door for new business opportunities, thanks to their leadership in IT solutions and IT systems integration,” Magnus Mandersson, head of Business Unit Global Services at Ericsson, said.
A Telefonica spokesperson said pre-pay is a key part of the telco’s global offerings, and that the deal “offers a unique opportunity” to develop the billing set-up.