EXPERIENCE ICTEricsson IT Managed Services

Evolve the Experience

2 IT MANAGED SERVICES

CUSTOMERSCustomers are becoming accustomed to having a wide variety of services provided by agile and innovative OTT players. In order to remain relevant, operators need to keep one eye on the market at all times, ensuring constant innovation and the ability to bring new products to the market quickly.

TECHNOLOGYData traffic is growing exponentially. In order to match and exceed their competitors, operators need to continually innovate and be willing to invest in new technology. They must also be capable of handling the complexity involved in converging technologies across many different dimensions.

FINANCEAverage revenue per user (ARPU) has declined over the past few years, in correlation with the decline of voice in favor of data. The number of users is increasing, along with their expectations. Operators need to come up with new ways to combat the resulting financial pressures. A managed services agreement can help to alleviate these pressures and reduce risk.

BUILT WITH YOUR CUSTOMERS IN MINDStudies show that network and service performance are the most important factors in ensuring customer satisfaction. Contented customers are loyal, spend more, and are more likely to make recommendations to their friends and colleagues.

EVERY CHALLENGE IS AN OPPORTUNITY FOR SUCCESS As the Networked Society develops, operators are faced with a variety of new challenges. There are three key areas where these challenges are particularly demanding: customers, technology and finance. Each of these areas can be successfully addressed through an end-to-end managed services agreement.

Our IT Managed Services offering includes all activities typically performed when running an IT environment. These include:

> Business process operations

> IT application operations

> IT infrastructure operations

> Application Development and Maintenance (ADM)

> Testing as a Service (TaaS)

> Hosting and cloud services

Our methods embrace multi-vendor environments, providing the flexibility to develop and deploy services and infrastructure using any chosen vendor. All of this is controlled by a Service Level Agreement (SLA) based on certain performance indicators, designed to evaluate the services provided by you to the customer, as well as the internal business processes provided by the IT department.

SURVIVAL OF THE FITTEST In today’s competitive environment, success is all about making the right alliances. The best partnership is one that is mutually beneficial, offering end-to-end accountability through long-term commitment, and an effective operating model that takes into account organization, tools and processes.

As a managed services partner, we have unmatched cross-domain IT expertise and an in-depth understanding of the challenges and opportunities facing operators today. These factors combine to bring a unique insight into the progression of your business. It’s all about creating the best experience – for you, your staff, and your customers.

LEVERAGING OUR EXPERTISEToday’s market poses some difficult questions. We can help answer them.

With an Ericsson Managed Services agreement, we bring our telecom expertise straight to your IT environment, delivering the highest possible reliability and availability. IT Managed Services enables improved operational efficiency and reduces opex and capex, increasing overall profitability. By letting us take complete responsibility for your IT systems, you can focus effort and resources on your core objectives.

Partner responsibilities

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Network and IT transition

Network and IT operations

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Operator responsibilities

SKILLS AND CAPABILITIES

PROCESSES

TOOLS

Continual service improvements:

> Quality> Operational efficiency> Business value

END-TO-END RESPONSIBILITY

IT MANAGED SERVICES 3

A QUALITY-FOCUSED APPROACH

4 IT MANAGED SERVICES

COMPREHENSIVE MANAGEMENT With a single end-to-end operations provider for both network and IT, you benefit from synergy and improved coordination – all in all, the complete preventive and reactive maintenance of IT and network nodes. We take the same quality-focused approach for IT operations as we do for telecoms, providing carrier-grade operational excellence through large volume, real-time management.

We offer a network availability-focused approach to IT, which takes into account the shift from a vertical to a horizontal outcome-based business system. Through business and process control and preventive maintenance, our solution protects revenue, reduces churn and saves on subscriber acquisition and call center costs.

Today, more than 300 million customers rely on the IT platforms that we manage. As the only company with more than 10 years of experience in carrying out full scope network and IT deals, we’ll be there to ensure that the systems and services offered are constantly evolving.

HIGHER SPEND

Customers use operator services with fewer interruptions

BUSINESS IMPACT

ENABLING FACTORS

PROACTIVE MONITORING, END-TO-END PROCESSES AND SERVICE CONTROL

> Focus on quality of services> Combined application and infrastructure responsibility

TREND AND ROOT CAUSE ANALYSIS TO REDUCE RECURRING ISSUES

> Real-time performance measurement> Preventive maintenance

IT OPERATION MANAGEMENT

Infrastructure operation

CHURN REDUCTION

Increased loyalty to the operator brand due to a more positive customer experience

LOWER CALL CENTER COSTS

Operator call center opex reduction due to fewer incoming tickets

ECOSYSTEM

Application operation

BUSINESS AND SERVICE CONTROL

ENABLING FACTORS DESIGNED TO ENHANCE THE CUSTOMER EXPERIENCE

IT MANAGED SERVICES 5

ENSURING CONSTANT EVOLUTION With us as a partner for both network and IT operations, you benefit from lower costs and higher reliability in all operational service-assurance layers, while at the same time offering an exceptional customer experience.

ENHANCED CUSTOMER EXPERIENCE As network and operations management specialists, we bring unrivaled market and technological expertise. We know that from activation to billing, offering the optimum customer experience will help you to stand out from the crowd and secure business objectives. That’s why we prioritize problem resolution based on business impact, as well as improving service availability by reducing resolution time and the number of problems overall.

Our involvement has resulted in a 10-20 percent improvement in the number of activation process tickets, and a 3-5 percent improvement in the number of top-up process tickets.

PREVENTATIVE MAINTENANCEWe manage IT operations according to SLAs that are based on key performance and service level indicators. Preventive maintenance in accordance with individual business processes ensures that the necessary reliability and availability is delivered.

IMMEDIATE SAVINGS Ericsson IT Managed Services delivers savings from day one, thanks to our financial strength, scale, methods and tools. We offer an improvement in total cost of ownership, along with increased quality, faster time-to-market and reduced risk.

Depending on the maturity of the organization, we can create savings of more than 30 percent. Through data center transformation, we have also managed to achieve a reduction of up to 85 percent in hardware and software maintenance costs throughout the engagement period. Specifically, these savings are the result of industrialization, transformation, smart-shoring and streamlined management processes.

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A TRUSTED Partner

WE ARE GLOBALWith local relations in 180 countries, and more than 30,000 transferred operator staff – 3,000 of which originate from the IT domain – we are a trusted global player.

AVEAA competitive Turkish operator

> Testing services, including:

– Services for IT testing operation through Ericsson Testing Center

– TaaS

AXTELA fast-growing operator in Mexico

> IPTV operations, including:

– Full infrastructure for platforms and applications

– Full managed operations for delivery, including customer support

WINDFixed line operator based in Italy

> IT management, including full responsibility for four IT ADM block domains:

– Mediation

– VAS

– OSS

– IPTV

FASTWEBAn Italian operator providing fixed IP connectivity and MVNO for mobile

> IT managed operations with end-to-end responsibility

> OSS application operation and support

AT&TA prominent operator in the US

> Complete managed services for prepaid billing

> Design, integration, ADM, provisioning and market support

IT MANAGED SERVICES 7

An extended agreement with 3 ItaliaEMBRACING THE MODERN3 Italia signed one of the world’s largest managed services contracts with us in 2005, with the operator outsourcing its entire IT operations to us in 2007. The partnership proved so successful that the operator signed a new seven-year agreement in 2010 to modernize its IT infrastructure and systems, including hardware and software, IP connectivity, operating systems and storage.

3 Italia was clear about what it wanted: reduce capex and opex, increase productivity, efficiency and flexibility, and manage and embrace the rapid growth in data and multimedia traffic.

The operator has a variety of IT and network systems, including 3G multimedia, Operations and Business Support Systems (OSS/BSS), value-added services and enterprise applications. We were a major network equipment provider for this project.

UPGRADE, CONSOLIDATE AND TRANSFORMAs with all Ericsson IT Managed Services partnerships, the agreement takes into account the operator’s existing business processes and customer experience. The SLA, based on business KPIs, covers complete IT operations, the provision of application development and management, and the transfer and transformation of data center operations.

The contract included the upgrade and consolidation of 3 Italia’s software application domains, as well as the transformation of OSS and BSS, including systems for billing and customer relationship management.

Our management of the company’s IT operations resulted in improved quality of service, reduced problem-resolution time and a 40 percent decrease in opex including energy and licensing costs. In addition to this, the requirements for physical space were reduced by 90 percent. Power and cooling costs were down 83 percent, and staffing fell by 35 percent.

HUTCHINSON TELECOMA 3G operator based in Hong Kong

> Application managed services for more than 260 systems and platforms, and more than 70 technologies

> IT infrastructure management and operations across all platforms

> One managed services partner for ADM

> Infrastructure management to provide end-to-end responsibility

UNINORAn up and coming Indian operator

> End-to-end managed services solution, including:

– IT managed operations

– Application operation and support

– TaaS

55/287 01-FGB 101 127

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Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.

Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world’s mobile traffic goes through Ericsson networks and we support customers’ networks servicing more than 2.5 billion subscriptions.

We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company’s net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.