Ericsson and Telefonica extend successful co-operation for Network Virtualization

• Successful cooperation announced at MWC2014 to be extended
• Global project to transform Telefonica's networks towards Network Functions Virtualization (NFV) and Software Defined Networking (SDN)
• Ericsson to provide network functions virtualization (NFV), management and services

Ericsson (NASDAQ:ERIC)  and Telefonica have announced that they will continue working together to transform the operator's global networks, extending an agreement originally made in 2013 and executing on the results that it provided.

The focus of the partnership is on network transformation, including finishing an ongoing network virtualization total cost of ownership (TCO) study, and the two companies will also jointly work on an NFV roadmap that will prepare the first migration steps.

These steps include the set-up of a multi-vendor cloud environment to test Ericsson virtualized network functions (VNFs) on top of a cloud infrastructure, including the possibility of using Ericsson VNF Orchestrator.

A key long-term ambition for both companies is also to work together on the operational model definition for virtualization in telecommunications, IT and B2B.

Enrique Blanco, Global CTO Telefonica, says: "The co-operation that we entered into with Ericsson in 2013 has been very fruitful, and we are excited to continue the great work we have done together and begin to implement some of our findings. At Telefonica, we are convinced that network virtualization will help to improve TCO efficiency and improve our service agility."

Ulf Ewaldsson, CTO Ericsson, says: "Ericsson is at the forefront of Cloud and NFV technology, and well-placed to assist a global operator such as Telefonica to deliver on its vision and its targets. The cooperation so far has been superb, with both parties gaining valuable experience and insights, which we will now leverage to deliver superior results."

Ericsson and Telefonica signed a memorandum of understanding (MoU) in 2013 to launch a joint R&D program to explore and understand the challenges and opportunities in network virtualization during the coming decade.

Two areas of particular interest were network functions virtualization (NFV) and service provider software defined networking (SDN). At the center of this initiative is the need to build more flexible and cost-efficient solutions, as well as to enable networks as true platforms for innovation.

The program agreed in 2013 has been successfully executed during the past year, with quality deliverables achieved in different categories: the joint study report, a joint industry contribution and successfully-executed proof of concept (POC) including Ericsson Cloud Execution Environment, Ericsson Cloud Manager and virtualized network functions like virtual Evolved Packet Core and virtual Charging System.

Ericsson at Mobile World Congress 2015

During Mobile World Congress 2015 in Barcelona, Spain, Ericsson is showing world-leading technology, service capabilities, and innovations. The Networked Society is transforming entire industries. ICT tools have become fundamental everyday resources for businesses, people and society. We lead the way with software, services, and hardware solutions that drive development in mobility, broadband and cloud, creating the foundation for new eco-systems, and transformation across industries. The change that transformation brings is in the hands of everyone. That is why we at Mobile World Congress this year will talk about how we enable change-makers in the Networked Society.

You can find us at MWC in Hall 2, Stand 2N60. Follow us during the event using @Ericsson and join the discussion using #MWC15. Insights from our experts and Networked Society evangelists are also published on our blog during the event.

NOTES TO EDITORS

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Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure - especially in mobility, broadband and the cloud - are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.

With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world's mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions - and our customers - stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.

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