5 key facts
aboutManagedServices

Ericsson | 5 key facts about Managed Services

May 2020

5G and the need to transform

With the deployment of 5G and the demand
for reliable, secure and robust connectivity,
mobile network operators need to address
the intensifying complexity of their networks
that is driven by the increasing volume ofdevices, multiple new technologies, and morediverse service requirements.
From the nuisance of a funny clip on
Facebook annoyingly freezing just before
the punch line, to critical communications
where a glitch could be serious if it affects
a driverless car, remote surgery or an

automated factory, secure user experience is
now the main end-user expectation as 5G use
cases become more demanding, critical andsophisticated.
After 5G networks are planned, designed,built, optimized and then transferred tooperations, the focus shifts to supporting theoverall quality and security experience ofend-users which necessitates a fundamental
shift from the way deployed networks aremanaged and optimized today.
This shift from the traditional network

resource management model – wheretechnology-related capacity, performanceand availability are key – to successfully
operating high-performance service-driven
networks in a secure manner means that theoperations and optimization of 5G networks
must transform from being technology toend-user service centric.

2Ericsson | 5 key facts about Managed Services

May 2020

New Revenue streams and digitization
Delivering end-user value is key to achieving
success for mobile network operators. Overthe last decade, the day-to-day running ofnetworks & IT has become a demanding
challenge that is diverting mobile network
operators from the important business tasksof acquiring new customers, offering new
innovative services and delivering first-ratesecure end-user experience. In addition, andeven more so in Europe, mobile network
operators face market saturation, especiallyin the consumer segment.
Counteracting this, 5G is creating theopportunity for new revenue streams
while also accelerating cross-industry
digitalization. Most mobile network operators
are at various stages of leveraging 5G to
identify and gain additional revenue andmarket position across both consumer andbusiness segments.
The business segment is considered asignificant source of growth as 5G enables
new use cases such as low latency criticalapplications in manufacturing, logistics
and energy, and massive machine type IoT
applications such as smart metering.
Fast time to market with a high qualityof service will secure and grow businesssegment market share for mobile network
operators. The rapid rollout of infrastructurewith pre-integrated and verified solutions
along with providing new open and secure
partner and developer ecosystems to enable
service creation will be essential for success.

However, revenue growth for mobile network
operators from the consumer segment will
not follow the growth in data volumes driven
by 5G. Equally, these new consumer andbusiness sector opportunities put increased
demand on the operations, optimizationand security of 5G networks, and additionalpressure on operational costs necessitating
efficiency improvement.
To gain such efficiencies, mobile network
operations are turning to digitization
supported by, Artificial Intelligence (AI) andautomation to drive significant business andoperational process efficiency.
Mobile network operators have also
become receptive to migrating non-critical
IT applications to the public cloud. They
are taking advantage of Hyperscale Cloud
Provider scale to support agility and speedof launching new services, and the rapid
scale up or scale down of network or IT
capability to adjust to peak demand orcorrect the sub-optimal performance ofservices. This however necessitates theaccelerated adoption of new technology andorganizational models to Cloud Native andDevOps-based ways of working.
So, more than ever, mobile network operators
are now forging relationships with trusted
and secure partners, like Ericsson, that havethe experience and capabilities required
to help them transform and manage thesehighly complex networks.

Network and IT Operations

Day-to-day network and IT engineering andoperations have traditionally been central
to the business of mobile network operatorsin providing communications services. It
refers to those activities needed to design,build, manage, and optimize networks andIT, along with services and their associatedconfidentiality, integrity, availability andperformance.
These activities support multivendor-based
technology domains across mobile andfixed networks including radio and fixedaccess networks, backhaul and transmission,core networks, along with operational andbusiness support systems, and services such
as Voice, IoT and Mobile Broadband, that run
over these networks.

Key activities include:• Technology, network and IT strategy and architecture development and management• Planning, design, deployment and tuning of network and service coverage, capacityand functionality• Day-to-day operations and management of the entire network & IT infrastructure• Management of end-customer problems escalated from customer care
• Corrective and preventive field maintenance• Optimization of networks, systems and services to ensure performance is maintainedat or above required quality levels• Management of changes to the network• Installation and upgrades of equipment• Development, maintenance and operations of IT applications

3

Ericsson | 5 key facts about Managed Services

May 2020

Managed Services

For 10+ years, Managed Services has been atrusted business practice in telecoms. Many
local, regional and global mobile network
operators contract global Managed Service
providers like Ericsson to develop andmanage their networks in part or in whole.
Managed services frees up operators’
time and capital to allow them to develop
value added services for their end-users
whilst diminishing the risks related totransformation, reducing cost-related
uncertainties and improving insights into

the type of investment needed to retain theircompetitiveness and market position.
Telecoms-focused Managed Services
providers have invested significant timeand money to build up a degree of scale,
experience and capabilities matched byvery few. Managed Services provided byequipment suppliers like Ericsson leverage
the extensive technology, engineering andoperations experience accumulated acrossall their engagements over many years frombuilding and operating mobile and fixed

networks of varying sizes and complexity
across the globe.
Traditionally, Managed Services were used,in the main, to secure both operational andcapital cost savings. Now no longer merely acost-saving model, Managed Services havebecome the crucial catalyst to transform andimprove cost, quality, security and control of
network operations and performance, alongwith end-user experience.

This shift to Managed Services is driven by:
Continuing capital and operational costpressure

The need to simplify complexity andsupport the rapid adoption of newtechnology, cloud ecosystems anddigital stacks

A shift in focus of performanceand quality from network to user
experience-related metrics

The need to focus on core business andsecure the ability and agility to improvetime to market for new service offerings
and revenue expansion

The preference to direct investment
in growing business and avoiding
unnecessary risk, cost and time incomplex transformation of operations
and networks

Availability of broader perspectives,capabilities and business models
through the scale and experience ofManaged Services providers - someof which are multiple times the size ofindividual mobile network operators

Under a Managed Services contract, governedby a Service Level Agreement (SLA), theManaged Services provider commits tooperate the network and its services to levelof performance and reliability needed toensure the quality of end-user experience.
The mobile network operator retains fullownership and control, and is responsible forinvestment decisions, strategy, architectureand design, technology and vendor selection,
along with access control and security of theirnetwork.

The Managed Services provider assumes
responsibility for the day-to-day operations,
optimization and maintenance of the
deployed network, its services and platforms.
The provider implements best-practice
operational, engineering and security
processes and tools and transforms network
operations using an optimized global delivery
model to operate, optimize and maintain themobile operator’s network.

4Ericsson | 5 key facts about Managed Services

May 20205Data-driven Operations

With the advent of 5G, complexity andcriticality of networks have now risen to
the point of being impossible to designand operate efficiently without leveraging
the power of data and the use of cognitivetechnologies. This is leading many mobile
network operators to embark on data-driven
digital transformation initiatives to supporta shift from reactive and network-centric
operations, to predictive end-user servicecentric operations.
AI, automation and data analytics represent
the underlying pillars for supporting andenabling this transformation. While thebenefits of these are very clear, many mobilenetwork operators lack the skills, processes
and technological landscape to fully
maximize the use of these in their operations
so are increasingly looking to partners thathave deep expertise in these.
In parallel, Managed Services providers,leveraging AI, automation and data
analytics, are evolving to help mobile
network operators with this transformationof their operations and are driving afundamental change in how network &IT design, development, operations and12

optimization activities are performed.
Data-driven telecoms Managed Services
are built on a very strong foundation of
combining data science and AI-driven
capabilities along with deep telecom domain
expertise to a level that even the largest
mobile network operators may struggle toachieve.
The availability and quality of relevant data
– primarily performance and operations
data from mobile operator networks – is key
to successfully implementing data-driven
operations.
Managed Services providers obtain a copyof only the relevant data from the mobile
network and store it in a location and amanner that meets customer, legal andregulatory requirements. Mobile network
operators retain ownership of this data alongwith supervisory responsibilities for its accessand use under strict governance mechanisms
and obligations as required by theirrespective national and regional authorities.
Access to copied data is strictly controlled
within Ericsson using role-based accessmanagement and appropriate technicaland security controls. The handling of

https://www.ericsson.com/en/reports-and-papers/white-papers/machine-intelligence
https://www.ericsson.com/en/managed-services/drive-efficiency-from-the-inside-out

data is often a regulated subject with legal
restrictions on collection and use, andEricsson always operates in accordance withthese laws and regulations.
The need to access and process personal
data is very limited and avoided wherever
possible. If any personal data is stored andprocessed, it will be done in compliance withapplicable legal and regulatory requirements
and in agreement with the mobile network
operator. The managed services agreement
includes an obligation on the mobile network
operator to secure all necessary consent fromits end-users for Ericsson to be able to use,
store and process the personal data in themanner necessary for the relevant managed
service delivery scope.
Leveraging the influence of zero-touchnetwork operations through the power ofdata considerably lowers the risk of error
in executing operations activities, and tofurther mitigate risk a “human-in-the-loop”
operating model is deployed to ensure humanoversight and intervention throughout theend-to-end delivery of the managed service.

Ericsson | 5 key facts about Managed Services

May 2020

6Security

Security plays a critical role in theconfidentiality, availability, integrity andoperations of telecoms networks. However,finding the network, IT and cybersecurity
skill set needed are increasingly difficult tomeet the need for operating networks withcomplex security measures in place.
Ericsson’s global reach brings extensive
telecoms-related security experience alongwith broad international legislative andregulatory experience. Ericsson is ISO 27001
certified and applies a systemic approachto security, including in the development ofproducts and services, under the governanceof our Security Reliability Model (SRM)
ensuring consistency across our business.
In addition, Ericsson has a comprehensive
global privacy program based on Ericsson
Privacy Principles and also adheres to EU
Ethics guidelines for trustworthy AI.
For managed services, Ericsson commits

34to comply with legal and regulatory
requirements for data, privacy anddata management with no dilution ofaccountability with reference to legislativerequirements.
As Ericsson performs management,
optimization and operations activities
on mobile networks, providing secureand controlled access to and within these
networks is essential. Connectivity is put
in place between Ericsson and the mobilenetwork operators’ using security bestpractices for access control management,encryption and segregation of networks.
The mobile network operator retains
overall responsibility for the security of theirnetwork, with Ericsson having controlled andappropriate levels of access to those network
elements, platforms and functions that arewithin the scope of the managed services
contract.

https://www.ericsson.com/en/about-us/quality-workhttps://www.ericsson.com/en/reports-and-papers/white-papers/privacy-in-mobile-networks

Under this strict access control regime
Ericsson and the mobile network operator
cooperate to grant requirement-specificaccess to data, network platforms andsystems for required personnel vetted andwith justification of business need.
The activities of those who access theoperator network are monitored andrecorded. Regular audits are conducted toensure that only those who need access, haveaccess and only to appropriate networks
elements and systems, with the lowest levelof access needed to provide the contracted
for service.
Pseudo-anonymizing and / or anonymizingof data is used where necessary or wherelegally mandated to ensure compliance withapplicable legal and regulatory requirements.
In addition, where data needs to remain
in country or in region, local and regional
solutions and operations are deployed.

Ericsson | 5 key facts about Managed Services

May 2020

7

Ericsson Managed Services

Ericsson Managed Services are designed
to handle the increased complexity ofnetwork and IT engineering, operations
and optimization through a delivery modelthat uses AI, automation, data analytics

and a wealth of processes, tools and humanexpertise in the telco domain.
Our experience with reusing automation and
AI investments developed across multiple
mobile network operators allows Ericsson tobring telecoms domain expertise, a best-inclass operating model with mobile network
operator-specific automation, analytics andartificial intelligence capabilities to transformthe operations of mobile operator networks.

1.
Operations of multivendor-based
mobile and fixed telecoms networks
both in the field and remotely from ourNetwork Operations Centres

2.
Modernizing applications to cloudnative, developing new cloud-native
applications along with deployment,
maintenance and operations ofCloud, IT and IoT infrastructures andapplications

3.
Delivery of high-end design, planning,tuning and optimization services fornetworks, operator services and enduser applications

4.
AI-based software and technology
solutions providing insights to improve
network and IT performance, customer
experience and increase operational
efficiency.

With over 28,000
managed servicespeople, Ericsson provides
trusted and securemanaged services tosupport mobile network
operator networks
across the globe
that combined havemore than one billion
subscriptions, through:Delivered primarily from our global service
centers in the EU (Romania) and India,
regulatory, competence and language needs
drive the decision on which of these global
locations are used to process workloads.

5In addition, activities can be processedregionally or locally to meet relevant
regulatory or customer needs with delivery
centers in China for the Chinese market,
and in Mexico for the Americas, along withhttps://www.ericsson.com/en/managed-services

localized operations in a few countries
to meet specific regulatory or customer
requirements.

Ericsson enables communications service
providers to capture the full value ofconnectivity. The company’s portfolio spans
Networks, Digital Services, Managed Services,and Emerging Business and is designed
to help our customers go digital, increase
efficiency and find new revenue streams.
Ericsson’s investments in innovation havedelivered the benefits of telephony andmobile broadband to billions of people aroundthe world. The Ericsson stock is listed on
Nasdaq Stockholm and on Nasdaq New York.

ericsson.com

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