Nokia Siemens Networks will operate Zain's mobile networks in East Africa in a major, five-year deal, the two companies said Thursday.
Zain will contract Nokia Siemens "to optimize, modernize and manage Zain's over 3,000 multivendor mobile networks" in Kenya, Tanzania and Uganda, the Kuwait-based company said. It has more than 9 million customers in the region.
No financial details were given about the contract which includes transferring some 350 employees from Zain's network operations to the Finnish-German network maker.
Nokia Siemens Networks, a joint venture between the world's largest handset maker Nokia Corp. and German giant Siemens AG., said it will apply new technology to the networks to improve efficiency by reducing operating costs and power consumption.
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Zain Africa CEO Chris Gabriel said the outsourcing agreement would have a major impact on the company and its customers.
"Choosing Nokia Siemens Networks to help operate our networks in East Africa fits perfectly with ... our business objectives of improving efficiency and the quality of our networks and operation," Gabriel said.
Nokia Siemens said it expects "high customer growth" during the next five years in the region.
"This deal is unique as it's the first mobile network outsourcing contract in East Africa and with this we are able to capture strategic market share," said Joerg Erlemeier, head of the Middle East African region at Nokia Siemens.
Zain is one of the largest operators in the Middle East and Africa, with more than 70 million customers.
Nokia Siemens Networks, based in Espoo just outside Helsinki, employs some 60,000 people globally. It is the world's second biggest networks manufacturer after L.M. Ericsson of Sweden.
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