Euskaltel rings in ZTE for managed svcs

SHENZHEN, CHINA: ZTE Corporation has signed a 10-year network-wide managed services contract with Euskaltel, an operator in the Basque Country, a region of Spain. ZTE will also work with Euskaltel to guarantee its network quality, upgrade its technologies, and extend its services, it announced.

Following the deal ZTE will cement its headquarters in Basque Country, dedicated to the provision of services for the entire South of Europe, from where it will serve telecommunications operators in Spain, Portugal and the countries in the south of the continent.

Euskaltel was founded in 1995 with its headquarters in Derio, Basque Country, Northern Spain and is said to have a 43 per cent share of the broadband access market, 47 per cent share of the fixed network market, and 60 per cent share of the digital TV market. Euskaltel made the decision in 2013 to review its managed services providers, and ZTE tailored the solution that was most suitable for its requirements, as explained. ZTE's service subsidiary in Southern Europe (ZTE Managed Services Southern Europe S.L.) will provide Euskaltel with network-wide managed services including NOC operation, field maintenance, last-mile maintenance, service provisioning and assurance, enterprise customer implementation and assurance.

Alberto Garcia Erauzkin, President of Euskaltel, said: "Euskaltel did not select the cheapest solution or the solution with the lowest expected costs, but selected the solution that is best for Euskaltel's technology evolution and provides the best conditions (including professional development conditions) for employees."

With the signature of the contract,133 of Euskaltel's employees will join ZTE's service subsidiary, and also ZTE has customised a manpower transfer solution for them, which safeguards Euskaltel's targets, ZTE's, and the transferred employees' interests, and lays a solid foundation for smooth service transfer and contract delivery, it said.

To provide agile and high-quality services, ZTE adds it will establish its headquarters in the Zamudio Technology Park, where Euskaltel's headquarters is located. The new headquarters will also create new employment opportunities in the area. This organisation will provide technical support in accordance with Euskaltel's network evolution plan to meet its requirements for multidimensional development.

Xiao Ming, President of ZTE Europe, said, “this is an essential step forward in our investment in Europe, incorporating into our company the experience and knowledge of Euskaltel’s highly qualified personnel. ZTE is in a growth phase in Europe and this is a necessary step in allowing us to successfully complete the new projects this will present”.

Global Services has become one of ZTE’s most important businesses, the company states. From 2009 to 2013, the compound growth rate of the service business was 32 per cent, and the growth rate of managed services was up to 42 per cent. Over 140 Managed Service contracts in total have been signed around the world. Especially in European markets, managed services are developing steadily. In recent years, ZTE has signed comprehensive Managed Services agreements with H3G Austria, Polkomtel in Poland, Jazztel in Spain, E-Plus in Germany and KPN in the Netherlands.