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Deutsche Telekom and France Telecom Agree to Share Network Buying Efforts

Confirming the past few months of occasional rumours, Germany's Deutsche Telekom and France Telecom-Orange have agreed to combine their procurement activities of customer equipment, network equipment, service platforms and - starting with four pilot-projects - IT-Infrastructure in a 50/50 joint venture.

Deutsche Telekom anticipates savings of at least EUR400 million over three years, while France Telecom-Orange says that savings could reach EUR900 million. Savings from alignment for commercial benefit in network equipment in the first three years of the joint venture operations will be balanced out.

"Operators are expected to invest more than ever in networks and infrastructure as data usage increases exponentially and efforts to reduce the digital divide are being ramped-up," said Edward R. Kozel, Chief Technology and Innovation Officer of Deutsche Telekom. "With France Telecom-Orange we have an experienced and trusted partner who shares the same approach regarding economies of scale as well as customer benefits in technology harmonization."

The jointly owned and operated entity will have two operational units in Bonn and Paris.

The operational units in Paris and Bonn will be staffed by employees from the respective procurement departments of both groups that already deal with purchasing customer equipment, network technology, service platforms, IT-Infrastructure and procurement engineering.

The procurement joint venture is the result of bilateral exploratory talks between Deutsche Telekom and France Telecom-Orange, following the joint announcement in February this year to identify potential areas of cooperation in radio access network sharing in Europe, Wi-Fi roaming, equipment harmonization, Machine-to-Machine (M2M) services and a set of new growth business development areas.

Источник: Cellular news

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