Vimpelcom and Ericsson agree US$1bn software deal

VimpelCom has entered into a software partnership worth more than US$1bn with Ericsson that will transform VimpelCom’s global IT infrastructure.   

The partnership encompasses a complete overhaul of VimpelCom’s IT infrastructure across 11 countries and 12 time zones.  VimpelCom will digitalise and globalise its business support systems (BSS) infrastructure using Ericsson software and cloud technologies.

Vimpelcom describes the project as creating a digital stack which will accelerate product and service development, while the delivery and use of near real-time analytics, will allow greater personalisation of services for customers. In addition, a simpler user interface is set to enhance the customer experience on all levels. 

Jean-Yves Charlier, the chief executive of VimpelCom, said: “This marks a fundamental milestone in our transformation as we move ahead with our strategy to turn VimpelCom into a true digital pioneer. The new digital stack will help us better respond to our customers while also centralising and simplifying our business, creating lean and agile operations that will result in a more efficient cost structure across our global footprint.”

As a result of the digital transformation, VimpelCom’s IT systems management will become smarter, simpler and more future-ready as the company prepares to unlock new digital services for customers that will be enabled by an advanced network, able to support future-proof features and services, Ericsson says. In addition to a significant reduction in operating costs, the improved technology structure will enable VimpelCom to fast-track its digital innovation strategy, particularly in the areas of mobile entertainment, communication, the Internet of Things (IoT) and mobile financial services (MFS). Along with a wider digital service offering, VimpelCom will have the ability to offer customers customised offers, a frictionless online service experience and the speed and convenience of simplified and fully digital customer care.

With access to 10% of the world’s population, VimpelCom is particularly active in emerging markets where customers are only now beginning to experience the benefits of 3G and 4G technology.

Hans Vestberg, the president and chief executive of Ericsson, said: “In a fully connected world, success for operators requires performance, flexibility and efficiency. Ericsson’s unique BSS as a service concept, combed with our leading services and technology capabilities, will support VimpelCom in realizing these ambitions while positioning the company for further growth as ICT transforms industries everywhere.”

The global strategic partnership between VimpelCom and Ericsson represents both companies’ commitment to unlocking new digital services for VimpelCom’s customers. As a trusted partner, Ericsson will enable VimpelCom’s end-to-end digital transformation, which includes the management and operation of the new digital BSS environment using a cloud-based digital support system architecture, with Ericsson’s Revenue Manager at its core. 

Yogesh Malik, the group chief technology officer of VimpelCom, added: “The future is about being real-time, customising our offerings, and making them relevant and engaging for our customers as they navigate the digital world. This technology shift is a huge leap forward for VimpelCom and forms part of our strategy to transform into an agile business that understands our customers and answers their digital needs. Only by investing in the latest technology and going fully digital will we be able to provide these innovative and competitive services across the group. The pioneering digital stack technology will allow us to deliver new digital services that will be enabled by future networks, including 4G and beyond.”