Embarq’s New Era Begins as Nokia Siemens Takes Command

NSN has large operations centers in India and Lisbon, Portugal, that eventually may help “rationalize” its NOCs around the world. And for all the sincerity of the Kumbaya talk around dealing with personnel issues, the process is always a challenge.

“The transition of a large number of employees from one corporate parent organization and culture to another can be a difficult challenge. Employee morale and organizational stability are tested severely in any such transaction,” Marcus said. “This is especially relevant in network operations outsourcing, since operating the network is core to the service provider’s business.”

This also might be especially relevant given Middle America’s inherent suspicion of foreign companies. NSN is headquartered in Espoo, Finland. Spradley said the company has worked hard not just on the technical aspects of this relationship, but also the cultural aspects. “We have given them a window into the company. They were surprised to hear we have thousands of employees in the U.S.,” Spradley said.

On the day the deal with Embarq was announced, NSN representatives visited all the affected operations centers to introduce themselves. “We got a lot of positive feedback. A lot of people have never had the opportunity to work for a company that does business in other countries and I think they are interested in the opportunity to do some things globally.”

It is, in part, these employees that are providing the comfort level for Embarq to transition to NSN’s managed services without the aid of pilot programs or incremental trials of off-hour management. “These are their employees. They know what they’re doing. They are the foundation for moving forward. That relieves a lot of the anxiety,” Frank said.

So does 160 other examples of managed services in action. But Spradley says the managed services business is as much about relationships as it is about technology. “Nothing is more relationship-driven than a managed services contract. It sounds like so much marketing, but in these kinds of deals, you live on each other’s balance sheets and to do that you have to have a win-win relationship built on being candid and open with each other,” she said.

In negotiations, the relationship was somewhat broader. It included managing Embarq’s entire portfolio of IP, broadband, TDM, spares management and other services. “In the end it was pared back to remote management of the TDM network,” Frank said. “This will be an opportunity for Embarq to see how well we can do the work.”

But as is often the case, the end can be a new beginning. NSN would like to see growth not only with Embarq, but with other carriers as well. “We will measure our success by having a deeper and wider relationship with Embarq. That is clearly part of our goal,” Spradley said. “But our first step is to do this well and demonstrate to Embarq and to the North American market that managed services can be done effectively and, more important, strategically.”

Rest assured, they’ll be watching. As IDC’s Price said, “The NSN deal will get significant attention by operators ... considering managed services. This deal could potentially be a catalyst for other managed service opportunities in North America.”

Related Articles:

Nokia Siemens to Expand Apertio Beyond the HLR

The Challenge of Managing Multivendor Networks

NOC. NOC. Who’s There?