NSN, Deutsche Telekom seal $630m in partnership deals

Nokia Siemens Networks (NSN) and Deutsche Telekom have signed a series of contracts in what they say is a strategic partnership between the European vendor and telco.

Under the deal, NSN has won a five-year managed services contract worth 300 million euros ($427 million) and up to 150 euros million in equipment contracts for T-Mobile affiliates, also over five years.

The companies have agreed NSN will be a preferred services partner for Deutsche Telekom for upcoming outsourcing and managed services projects.

NSN will also take control of Vivento Technical Services (VTS) - a division of Vivento, Deutsche Telekom's personnel service provider, with 2000 staff and assets moving to the equipment firm. The deal is expected to close at the beginning of next year.

Rajeev Suri, head of Services at NSN, said the integration of VTS into the group was part of its strategy of transforming into a services and solutions company. It would help the firm win business in the German infrastructure services market, which is expected to grow 6% annually to 1 billion euros by 2010.

Deutsche Telekom will continue to use VTS's service delivery capabilities and to place additional contracts with the company, said Martin Walter, chairman of VTS's supervisory board.