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PrintOi cuts OPEX by a quarter with managed services deal
Managed services allow Oi Brazil to cut costs and free up the resources it needs to secure its future expansion.
"Oi found that its growth over the years had left it supporting a huge number of legacy systems."
Brazilian operator Oi already enjoys around 30 percent of the country’s telecommunications revenue, with 22.2 million fixed lines, 35.5 million mobile customers and 4.5 million broadband ADSL lines, as well as pay-TV. Like many successful operators, Oi found that its growth over the years had left it supporting a huge number of legacy systems, presenting a big challenge in terms of operating expenditure (OPEX).
Oi wants to increase its subscriber base from 60 million today to 110 million within the next five years.
From 200 contracts to one
Dealing with almost 200 separate contracts was creating unacceptable levels of OPEX. Oi wanted to cut this to very few contracts, leaving only one or two managed services providers responsible for covering Brazil’s 190-million-strong population.
Nokia Siemens Networks already had an excellent working relationship with Oi. The other major factor in choosing Nokia Siemens Networks was an agreement to help Oi make the transition to a single managed services arrangement in just a few weeks. This included the transfer of about 3,000 third party and Oi employees to Nokia Siemens Networks, from the 8,500 people contracted to be transferred in total.
Improved customer experience
The initial transition is being followed by a six-month process of adapting Oi’s operations and processes to meet stringent Key Performance Indicators (KPIs) and comply with strict Service Level Agreements (SLAs), which are all designed to protect the quality of service experienced by Oi’s customers.
The benefit for Oi is immediate, since the fixed monthly cost of the managed services contract effectively transfers the responsibility for making the required savings to Nokia Siemens Networks.
In short, the partnership between the two companies has paved the way to achieve Oi’s long term financial and strategic targets, as well as being one of 230 managed service contracts that Nokia Siemens Networks has delivered for networks covering more than 300 million subscribers.