Huawei Signs Five-Year Managed Services Contract with VimpelCom

Huawei, a leading global information and communications technology (ICT) solutions provider, has been selected as a partner by VimpelCom Russia, one of the world's largest integrated telecom operators, to manage its integrated telecommunications network. The contract will span a period of five years, during which VimpelCom will transfer an estimated 1,300 employees.

As part of the agreement, Huawei will take complete responsibility for the multi-vendor, multi-technology fixed and mobile networks, which cover the Volga and the Far East. The scope of work includes end-to-end network management, including multi-vendor operations and maintenance, field operations, 24/7 network assurance and spare parts management.

With a population in excess of 143 million and a land mass of 17 million square kilometers, Russia is the largest country in the world, with areas of unforgiving terrain and extreme weather conditions. With Huawei managing the network, this agreement allows VimpelCom to offer better network and service quality to its customers. In addition, VimpelCom will benefit from a significant improvement in the operation and maintenance efficiency of the network, as well as OPEX reduction.

"By transferring the network operation and exploitation to the Huawei, with its considerable experience and expertise, VimpelCom will achieve several important targets. The first is increasing efficiency and quality of network management, which will improve the service level for end-users in the mass market, as well as in the business segment. The second is optimizing business-processes and cost savings through the realization of the projects such as this partnership with Huawei, part of our strategic program to increase operational efficiency. The business-model of transferring network operation and exploitation to a third party is a common global trend today and we are glad that we are leading the Russian market in this sphere. We are certain that this large-scale cooperation with Huawei will strengthen our position and help us to achieve our targets," said Anton Kudryashov, Head of the Russia business unit and General Director of OJSC VimpelCom.

Xiong Lening, President of Huawei in Russia, Ukraine, Belarus and Armenia, said: "The partnership with VimpelCom in the field of Managed Services is strategically important for us and we are honored to be trusted by our customers in this way. The agreement is an important step that will support the development of our long-standing partnership with the VimpelCom, optimize operator costs, and improve network efficiency for the benefit of customers in Russia."

As the first fully Managed Services project in Russia, this cooperation is an important milestone for Huawei and VimpelCom, and a significant reflection on Huawei’s strong capabilities in providing professional services, particularly in Managed Services. Huawei’s abilities in this field are further supported by the many contracts won by Huawei in 2012 across many parts of the world, including the United Kingdom, Switzerland, Indonesia, and Singapore. As the world's fastest growing managed service providers, Huawei has, to date, obtained more than 240 managed services contracts in over 60 countries around the world, with a compound growth rate of more than 70% for the past six consecutive years.