Mobile phone equipment maker Ericsson has signed its biggest ever managed services deal with British operator 3 UK, the Swedish company said on Tuesday.
Ericsson's stock climbed 4 percent on the deal with 3 UK, the smallest of Britain's five network operators and owned by Hong Kong conglomerate Hutchison Whampoa.
Managed services, where Ericsson runs the network on behalf of operators, is seen by the Swedish company as a key growth area, alongside its traditional business of selling radio and transmission equipment to operators.
Ericsson gave no value for the deal or any information about its earnings impact, but a spokesman said it was worth more than a similar contract to run 3's network in Italy, won in January.
The spokesman said the value of that deal "had been indicated" at 15 billion to 20 billion crowns ($1.9 billion to $2.5 billion).
"This is the largest managed services partnership contract signed by Ericsson to date and one of the largest ever signed in the industry," Ericsson said in a statement.
The company said it would take charge of the management, maintenance and expansion of 3's network and IT infrastructure as well as ongoing radio network rollout.
"A supply of equipment, additional technology and related services, is also part of the future relationship," it said.
It gave no details on what equipment it would supply, which had so far been bought by 3 UK from other vendors.
It would also ensure the maintenance of the existing 6,300 radio sites and the management of the core network and operations centre.