Vodafone Hutchison Australia has announced a new deal to expand a network management agreement with Nokia Networks. The contract will see Nokia provide remote network management of Vodafone from India. “I want to be clear, we are running this network from India,” said Nokia Networks head of Australia and New Zealand Ray Owen. “We have the support here, yes, but the majority of the network operations here are run from India very successfully and there are many advantages to that.” Mr. Owens gave details about Nokia’s plans to digitise mobile networks so the management of the company can be controlled anywhere in the world. Vodafone’s multi-vendor paging, 2G, 3G and 4G operations will be managed by Nokia’s global delivery centre in India under the new deal.
The four-year deal is an extension of a current contract signed in 2006. The two companies had a spat in 2011 when Vodafone suffered from significant network failures, a problem which caused much notoriety for the Australian mobile network company. The network issues have been cited as the reason for the 2 million decline in its customers over the last five years. The two parties went to court in 2011 after allegations that Vodafone broke Australian Consumer Law by withdrawing an $8m performance bond after the network issues debacle. Vodafone and Nokia have since put differences aside and settled the issue in the same year. Mr. Owens has said that having the majority of the important staff in India would prevent a repeat of the 2011 problems. Vodafone has reported its first increase in customers since the debacle late last year. As both companies agree to continue the partnership, executives at the Australian telecomm believe this deal will be beneficial to its Australian customers. Vodafone CTO Benoit Hanssen believes this deal will provide the “best-in-class service experience to customers.”
Author: Imran Valibhoy
Mar 27, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.