Ericsson said that it has won a three-year managed services deal from Telefonica to operate its network operations centre in Sao Paulo, Brazil.

The deal will allow Telefonica to strengthen its position in the Brazilian market as it increases focus on launching innovative products and services for its 14 million customers.

The new contract extends the managed services cooperation between Ericsson and Telefonica Brazil which was established in 2008, when Ericsson was selected to operate and maintain a new multivendor optical fibre network in Sao Paulo state.

The new three-year deal includes core, transmission and ADSL networks. In addition, Ericsson will also be responsible for spare parts management.

Jose Homobono, vice president at Telefonica, said: “We have entered into this managed services partnership in order to strengthen our focus on the customers. We chose Ericsson because of its global experience in managing complex projects. I am convinced the agreement will improve our competitiveness on the market.”

Andre Machado, commercial vice president for Ericsson Latin America, said: “Managed Services has proven a successful model as it provides operators with reduced cost and improved efficiency. Besides that, operators can devote even more attention to providing its customers with the latest mobile services with excellent network quality.”