Axiata & Ericsson Enter Into Long-Term Strategic Cooperation
Kuala Lumpur 3rd November 2010 - Axiata Group Berhad, one of Asia's largest telecommunications group, today announced that it has entered into a five-year strategic global framework arrangement with Ericsson, a leading provider of telecommunications equipment and related services. In the agreement, one of the most comprehensive and advanced in the industry, both Axiata and Ericsson have agreed to work together to establish a streamlined procurement platform which will realise business efficiencies and competitive advantage through cash flow improvement and timely purchasing. The agreement will also enable Axiata to leverage on its volume, across five countries in the region, for pricing arrangements which will ultimately translate into cost savings for Axiata Group.
Specifically, the Axiata-Ericsson framework agreement will provide Axiata and the Axiata group of Companies (OpCos) a common platform for the purchases by Axiata and its group of Companies (OpCos) of telecommunications and other products as well as the provision of related works and services from Ericsson. This cooperation which will improve engagement and further strengthen the relationship between the two companies, will involve the regular exchange of information on technical and technology areas relating to products, works and services purchased by Axiata and the Axiata Companies. Axiata will therefore have better visibility of Ericsson's roadmap and be able to leverage off this knowledge base and target its spend more efficiently.
President and Group Chief Executive Officer of Axiata, Dato' Sri Jamaludin Ibrahim said “Speed is crucial in the telecommunications industry and this agreement reduces the time required by each of the companies in purchasing products and services thereby translating into faster time to market which will ultimately benefit customers. We look forward to working closely with Ericsson, towards a mutually beneficial agreement”
Hans Vestberg, President and CEO of Ericsson said; “Leveraging our long successful partnership with Axiata group, the agreement will streamline the procurement process while achieving time and cost savings – true win-win situation for both of the companies. We're proud of being chosen as the first vendor to be awarded this credibility by Axiata group.”
Axiata is one of the largest Asian telecommunication companies, focused on high growth low penetration emerging markets. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India and Indonesia are amongst the fastest growing markets in the world. In addition, the Malaysian-grown holding company has stakes in non-mobile telecommunication operations in Thailand.
The Group's mobile subsidiaries and associates operate under the brand name ‘Celcom' in Malaysia, ‘XL' in Indonesia, ‘Dialog' in Sri Lanka, ‘Robi' in Bangladesh, ‘HELLO' in Cambodia, ‘Idea' in India, ‘M1' in Singapore and ‘MTCE' in Iran (Esfahan).
The Group's, including its subsidiaries and associates, has over 130 million mobile subscribers in Asia. The Group revenue for 2009 was RM13.1 billion. The Group provides employment to over 25,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia.
Axiata was awarded the Frost & Sullivan 2009 and 2010 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 for its operations in multiple Asian markets.
For further information on Axiata visit www.axiata.com
Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with featurerich personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.
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