Denmark's leading provider of communications solutions, TDC, has entered a strategic partnership agreement with Swedish telecom giant Ericsson. The agreement, which becomes effective as of 1 March, means that Ericsson will take over the operation of TDC's mobile network, and that TDC can offer mobile broadband to 99% of the population during 2010.
Jens Alder, president and CEO of TDC said in a press release: "This is the first time in the Nordic region that a telecompany with TDC's market position has entered a partnership agreement that is so far-reaching that one supplier will be managing operation, maintenance and expansion of the mobile network."
TDC will continue to own the net and will handle the strategic planning, while Ericsson will handle managed services. As part of the agreement approx. 220 TDC staff will be transferred to Ericsson.
"With Ericsson as our strategic partner we are well positioned to further build our leading market position. This contract is the first of its kind for TDC and will allow us to focus on our core business and supply world-class service to our customers," Jens Alder told national daily newspaper Jyllands-Posten.
Teleanalyst John Strand said that Ericsson is a good choice since the company is the world's largest player in this type of contract. "The close historic relation between TDC and Ericsson makes it a natural choice."
Ericsson has more than 100 similar agreements with mobile operators worldwide. Carl-Henric Svanberg, CEO of Ericsson said: "To us the agreement is in line with Ericsson's strategy in managed services, and the responsibility for operating and expanding TDC's mobile network combined with the knowledge and competences of the staff will be the building blocks for expansion and growth in the Nordic market."