Chinese telecom equipment maker Huawei has gained its largest contract in the UK by signing a five-year network management service contract with Telefonica UK, which trades under the O2 brand.

Based on the contract, Huawei will manage the core network planning and deployment of O2. Meanwhile, O2's 56 permanent roles will transfer to the Chinese company, and 62 contractors will also be moved.

O2 has not used any Huawei equipment on its core network, said a spokesperson from Huawei, but Telefonica is obviously impressed by the services of the Chinese company. The spokesperson did not reveal the value of the contract.

Victor Zhang, chief executive officer of Huawei UK, said the contract is Huawei's first major management service agreement in the UK. Zhang said Huawei and Telefonica have implemented cooperation across the global market and this agreement represents their enhance partnership. This is an important step for Huawei to establish its world-class management service capacity in the UK. It is also a long-term strategic commitment for both companies to providing the best core network management service.