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Embarq and Nokia Siemens Networks Ink Managed Services Agreement

Nokia Siemens Networks will assume ownership of Embarq Corporation’s (EQ) voice network operation center (NOC) function to enable EMBARQ to reduce operational expenses for voice traffic monitoring and technical support of its network operations, and to capitalize on Nokia Siemens Networks’ worldwide infrastructure and expertise.

This deal marks the first significant managed network operations agreement of its kind for Nokia Siemens Networks in North America.

Under terms of the seven-year agreement, Nokia Siemens Networks will perform network operations for EMBARQ’s voice networks, ensuring high network quality and providing ongoing technical assistance. As part of the agreement, approximately 265 EMBARQ employees in the NOCs in New Century, Kan.; Johnson City, Tenn.; Leesburg, Fla.; and Greenville, N.C., will become employees of Nokia Siemens Networks.

The expertise in managed services that Nokia Siemens Networks brings to the table will expand these NOCs into knowledge powerhouses, resulting in the highest possible network quality along with a unique package of integrated network services. In conjunction with Nokia Siemens Networks’ Global Network Solution Centers, a virtual global network will be formed that provides the best possible service levels and expertise in a cost efficient way. Managed services offer several advantages to operators like decreased operational expenditure through increased efficiency, process excellence, high usability and serviceability of the network.

According to Jim Hansen, senior vice president of Network Services at EMBARQ, Nokia Siemens Networks has scale that EMBARQ could not duplicate without a major investment of funds. “The bottom line is that Nokia Siemens Networks will bring its global telecom experience to play as a productivity multiplier to more efficiently monitor our voice traffic and provide technical support while meeting or exceeding current service levels,” said Hansen.

“This agreement is a significant step forward in establishing Nokia Siemens Networks’ Managed Services capabilities in North America and we are thrilled to be working with a company like EMBARQ to help us establish this services offering,” said Sue Spradley, Head of North America, Nokia Siemens Networks. “We believe that the North American marketplace holds tremendous opportunity, and this investment demonstrates our commitment to grow our business and have the industry’s best service capabilities for communications companies.”

Nokia Siemens Networks will assume operational responsibility under the agreement in the beginning of 4Q08. At that time those EMBARQ employees involved in the agreement will become employees of Nokia Siemens Networks. Their responsibilities will remain the same and are expected to expand to cover other networks and technologies supported by Nokia Siemens Networks. “Both companies are working very hard to ensure a smooth transition for those employees who will make the shift,” said Hansen.

Nokia Siemens Networks was selected based on excellent references, scalability, multi-vendor capability and technical competency in global delivery. This contract further strengthens Nokia Siemens Networks’ position as one of the leading managed services suppliers with more than 170 managed services contracts worldwide, serving more than 130 million subscribers globally.

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