AMSTERDAM, June 13, 2016 /PRNewswire/ -- VimpelCom Ltd.
(NASDAQ:VIP), the international communications and technology
company that is committed to bringing the digital world to each and
every customer, today announces that it has entered into a software
partnership with Ericsson (NASDAQ: ERIC), in a deal worth more than
USD 1 billion that will radically
transform VimpelCom's global IT infrastructure.
The partnership encompasses a complete overhaul of VimpelCom's
IT infrastructure across 11 countries and 12 time zones - on a
scale that is the largest and most ambitious in the industry's
history. VimpelCom will digitalize and globalize its Business
Support Systems (BSS) infrastructure using Ericsson's new software
and cloud technologies.
The agreement reflects VimpelCom's commitment to bringing the
best services to its customers through innovative solutions and
industry collaborations. The Digital Stack will accelerate product
and service development, while the delivery and use of near
real-time analytics, will allow greater personalization of services
for customers. In addition, a simpler user interface will also
enhance the customer experience on all levels.
Jean-Yves Charlier, Chief
Executive Officer 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
centralizing 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. In addition to a
significant reduction in operating costs1, 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
customized offers, a frictionless online service experience, and
the speed and convenience of simplified and fully digital customer
care.
With access to 10 percent of the world's population, VimpelCom
plays a unique role in creating digital empowerment for customers,
particularly in emerging markets where they are only now beginning
to experience the benefits of 3G and 4G LTE technology.
Hans Vestberg, President and CEO, 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, Group Chief
Technology Officer of VimpelCom, said: "The future is about
being real-time, customizing 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. Additionally, the pioneering Digital
Stack technology will allow us to deliver new digital services that
will be enabled by future networks, including 4G LTE and
beyond."
Disclaimer
This release contains "forward-looking statements", as the
phrase is defined in Section 27A of the U.S. Securities Act of
1933, as amended, and Section 21E of the U.S. Securities Exchange
Act of 1934, as amended. Forward-looking statements are not
historical facts, and include statements relating to, among other
things, our digital transformation, our plans to implement the
Digital Stack transformation project, and the expected timing,
benefits and results of the Digital Stack transformation. The
forward-looking statements included in this release are based on
management's best assessment of the Company's strategic and
financial position and of future market conditions, trends and
other potential developments. Forward-looking statements involve
risks and uncertainties. The actual outcome may differ materially
from these statements as a result of: continued volatility in the
economies in our markets; unforeseen developments from competition;
governmental regulation of the telecommunications industries;
general political uncertainties in our markets; and government
investigations or other regulatory actions and/or litigation with
third parties. Certain other factors that could cause actual
results to differ materially from those discussed in any
forward-looking statements include the risk factors described in
the Company's Annual Report on Form 20-F for the year ended
December 31, 2015 filed with the U.S.
Securities and Exchange Commission (SEC) and other public filings
made by the Company with the SEC. The forward-looking statements
speak only as of the date hereof, and the Company disclaims any
obligation to update them or to announce publicly any revision to
any of the forward-looking statements contained in these
presentations, or to make corrections to reflect future events or
developments.
About VimpelCom
VimpelCom (NASDAQ: VIP) is an international communications and
technology company, headquartered in Amsterdam, and driven by a vision to unlock
new opportunities for customers as they navigate the digital world.
Present in some of the world's most dynamic markets, VimpelCom
provides more than 200 million customers with voice, fixed
broadband, data and digital services. VimpelCom's heritage as a
pioneer in technology is the driving force behind a major
transformation focused on bringing the digital world to each and
every customer. VimpelCom offers services to customers in 14
markets including Russia,
Italy, Algeria, Pakistan, Uzbekistan, Kazakhstan, Ukraine, Bangladesh, Kyrgyzstan, Tajikistan, Armenia, Georgia, Laos, and Zimbabwe. VimpelCom operates under the
"Beeline", "Kyivstar", "WIND", "Mobilink", "banglalink", "Telecel",
and "Djezzy" brands. Follow us on Twitter @VimpelCom,
visit our blog @ blog.vimpelcom.com or website @
http://www.vimpelcom.com
About Ericsson
For media kits, backgrounders and high-resolution photos, please
visit www.ericsson.com/press
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 2015 were
SEK 246.9 billion (USD 29.4 billion). Ericsson is listed on NASDAQ
OMX stock exchange in Stockholm
and the NASDAQ in New York.
www.ericsson.com
1 Going forward, VimpelCom Group will reduce by more
than 50 percent its IT expenses (opex and capex) by year three,
down to a ratio of around 2 percent of Group total revenue. These
efficiency gains are already included in the target of USD 750 million cash flow improvement disclosed
to the market in August 2015. The
costs and investment associated with the project are included in
VimpelCom's financial guidance for 2016, as disclosed in the
first-quarter results on 12 May 2016.
The contract with Ericsson is for a seven-year period with an
option to extend.
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SOURCE VimpelCom Ltd.