Telefónica has secured its largest ever business contract by securing a 350m euros deal with DHL owners Deutsche Post World Net, and will charge O2 UK with managing the account.
The five-year contract will see Telefónica become Deutsche Post World Net’s primary fixed and mobile telecommunications provider across 28 European countries for 125,000 employees at 240 sites. O2’s UK CEO, Ronan Dunne (pictured), has been placed in charge of leading the operation on behalf of Telefónica.
The agreement will require Telefónica to provide more than 100,000 local area network (LAN) ports, more than 60,000 fixed voice devices and 80,000 mobile connections, which includes 24,000 mobile phones and smartphone devices. Telefónica claimed the deal will save Deutsche Post World Net 150m euros.
Julio Linares, COO and managing director of Telefónica SA, said: ‘This contract reflects Telefónica’s strategic commitment to the multi-national corporate market and its ability to deliver integrated communications to global leaders like Deutsche Post World Net.
‘Telefónica’s position as the world’s leading converged communications provider enables us to quickly develop and deploy the most suitable fixed
and mobile solutions as well as IP managed services for global corporates anywhere in the world.’
The deal is understood to be a big win for O2 in the tussle with
Vodafone for number one status in the business market.
Vodafone’s most lucrative UK deals are thought to be within the public sector, including its ‘Mobile Solutions (II) framework agreement’, which sees it provide solutions for both central and local government. The operator’s UK arm announced last month that it had extended the deal for a further two years, which could stretch to four more years.
Vodafone UK also announced on Tuesday (6 January) that it has agreed a £5m deal with National Grid, which will span three years.