21 January, 2005: Ericsson has signed an exclusive managed services contract with H3G Italy of the Hutchison Whampoa Group. Under the agreement, Ericsson will be responsible for the overall management of H3G Italy's 3G network. H3G Italy, part of one of the world's largest 3G operators and with over 2.6mn subscribers in Italy, has chosen Ericsson as a strategic partner for the total management and development of its multi-vendor 3G network in Italy. The contract also contains optimization of assets, management of H3G Italy's advanced 3G-multimedia service environment, including management of the service layer and business support systems.

The agreement will deliver increased efficiency and cost savings of about €250mn in a five year period for H3G Italy, supporting the operator's further expansion in the area of 3G multimedia and video services in Italy. The agreement includes transfer of some 750 employees from H3G Italy to Ericsson, which will complement Ericsson's advanced service organisation in Italy. The due diligence phase starts immediately and is expected to be concluded within two months. Ericsson will assume responsibility during the second quarter of 2005.

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