Liberty extends its Ericsson contract to six markets
Liberty Global has been buying managed services from Ericsson since 2016 for its Poland, Hungary, and Austria markets. The company has signed up for a bigger managed services contract with Ericsson, where it has extended its existing contracts and handed Ericsson more footprints. Under the new contract, Ericsson will provide managed services for six Liberty Global markets. In addition to Poland and Hungary, which were covered under the old contract, Liberty Global has tapped Ericsson to provide managed services for its markets in the United Kingdom, Ireland, the Netherlands, and Germany.
Managed services contributed 13% of revenue
For the extended contract, Liberty Global expects Ericsson to help it improve its network availability and stabilization so it can deliver better customer experiences. The companies did not reveal the financial terms of the contract.
The managed services business contributed 13.1% of Ericsson’s revenue in the second quarter, with Europe and Latin America being the company’s largest managed services market region.
Managed services market is a $257.8 billion opportunity
Besides Ericsson, other major players in the managed services industry are IBM (IBM), Cisco Systems (CSCO), and Verizon (VZ). The global managed services industry is poised to grow to $257.8 billion by 2022 from $152.5 billion in 2017, according to MarketsandMarkets. Verizon and IBM reported revenue rises of 5.4% and 3.7% YoY (year-over-year), respectively, in the second quarter. Cisco Systems posted revenue growth of 5.9% YoY in its fiscal fourth quarter, which ended in July.