has signed a four-year contract for network maintenance with Ericsson. According to the agreement, Ericsson will take over 190 employers from Group. The total value of the contract amounts to PLN 368m. The contract will replace the existing managed services contract signed in 2010. The agreement extends the geographical reach of the contract to include telecommunication networks acquired by . In addition, the agreement modifies certain pricing and operational parameters concerning the provision of services by Ericsson to Group.
The signed contract is a consequence of Netia’s extended business scale after big acquisitions. The new pricing parameters of the agreement as well as the transfer of 190 people to Ericsson are part of the targeted annual synergies of PLN 130m from 2014. We do not expect the news to have a price-moving character.