Tata Comm, BT in voice outsourcing deal

26-06-2009

British Telecom group has signed a five-year $1 billion voice outsouring deal with Tata Communications. BT will outsource its entire international voice traffic to TCOM.

TCOM will offer voice carriage and termination services to BT for various destinations. "TCOM will become BT?s primary supplier of International Direct Dial and other voice termination services outside BT?s own footprint countries and BT will become TCOM's main distribution channel for its traffic into the UK, expanding into other markets across Europe as the relationship matures," TCOM said in a statement.

TCOM could reportedly earn around $1 billion from the deal. The company reported 24 billion minutes of traffic last year, which brought in around $1.2 billion. The current agreement could likely bring in approximately 6 billion minutes for TCOM, according to a company official

Over a five-year period, and factoring in fluctuations in traffic and rates, a total of 24 billion minutes can be estimated for the current deal, which could bring in around $1 billion for TCOM.

"The agreement will increase both partners' competitiveness and will enhance our respective service offerings," TCOM president of global voice solutions Michel Guyot said.


From Economic Times




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