Zain Iraq and Ericsson extend managed services deal to optimize network and IT operations

Zain Iraq and Ericsson (NASDAQ: ERIC) have signed a three-year extension of their network and IT operation and optimization managed services agreement.

Under the extended agreement, Ericsson will continue to optimize, transform and manage network and IT operations for Zain’s nationwide 3G mobile network in Iraq, which currently includes over 4,200 sites across the country. This agreement will allow Zain to focus on expanding its network and offering appealing voice and highly demanded data services to meet customer needs, especially in the corporate sector.

The deal will result in Zain ramping up its offer to deliver best quality of service and experience to its 11.2 million customers using Ericsson’s managed services capabilities. The agreement also sees Zain benefit from a reduction in operating costs (OPEX) while offering customers improved data service quality and availability, given the pent-up demand for mobile broadband in the country.

Furthermore, Zain will be able to increase its focus on its core customer-facing business activities such as managing customer relationships and offering a shorter time-to-market for the delivery of new services and technologies.

Scott Gegenheimer, Zain Group Chief Executive Officer, says: “Through this agreement, Zain Iraq will be better positioned to support the evolution and growth of the telecommunication industry in the country and ensure that all Iraqis receive urgently-needed quality mobile telecommunication services. Social volatility has led to network instability in this huge and significant market for Zain, and as we strive to continue providing connectivity for our valued customers, our close relationship with Ericsson enables us to maintain vital mobile services and further contribute to the economic and social development of Iraq’s economy.”  

Rafiah Ibrahim, Head of Middle East and East Africa at Ericsson, says: "Today’s announcement is another testimony of our long-term partnership with Zain in Iraq and across other markets.  Throughout the years, we helped Zain in Iraq to provide a differentiated experience to its customers and we look forward to continuing our partnership and transform Zain’s network with our experience centric managed services offerings."