Deutsche Post World Net and Telefónica sign EUR350m agreement
Deutsche Post expects to save over EUR 150m by streamlining telecommunications services.
Deutsche Post expects to save over 150m euros by streamlining telecommunications services.
Telefónica will provide a wide range of telecommunications services for employees in 28 European countries.
Deutsche Post has selected Telefónica to manage its communications services across 28 European countries over the next five years.
Telefónica will become Deutsche Post World Net’s primary fixed and mobile telecommunications provider in Europe and is expected to help the logistics group save over 150 million euros in costs over the period.
Telefónica will provide secure telecommunications services for 125,000 employees and 2,400 sites in Europe, and will transform Deutsche Post World Net’s Internet Protocol (IP) network services. The service will be delivered by Telefónica in Spain, its O2 businesses in UK, Ireland, Czech Republic and Slovakia as well as new operations and partnerships in 23 other Western European countries.
The European service will be managed by a dedicated 24×7 Service Management Centre in Prague and is expected to go live in early summer of 2009, subject to the usual approval by the cartel authorities and the completion of the transaction.
Deutsche Post World Net has been seeking to reduce costs and derive more value from its businesses as part of its Roadmap to Value capital markets programme. The Group is also seeking to optimise its telecommunications services in the United States, Latin America, Asia-Pacific as well as emerging markets, which is expected to lead to additional cost savings in 2009. As already announced, the Group aims to cut 1 billion euros in costs by the end of 2010.
This agreement, with a total contract value of nearly 350m euros, is Telefónica’s largest pan-European combined fixed and mobile contract, and will span Deutsche Post World Net’s Freight / Global Forwarding, Supply Chain / Corporate Information Solutions, Express, Global Mail as well as Global Business Services business divisions in the 28 European countries, excluding Germany.
