Telefonica signs largest converged deal at €350m

O2 parent company Telefonica has signed a €350 million (£318.55 million) pan-European telecoms services agreement with Deutsche Post World Net, it’s biggest pan European converged contract to date.

Telefonica is to provide all of the company’s mobile, fixed voice and data services to 125,000 staff, over 2,400 sites in 28 European countries over the next five years. Deutsche Post World Net owns logistics companies DHL and Postbank.

The deal is expected to save Deutsche Post World Net more than €150 million over the five year period by streamlining telecommunications services.

The contract comprises more than 100,000 LAN Ports, more than 60,000 fixed voice devices and 80,000 mobile connections including 24,000 mobile and smartphone devices.

The service will be delivered by Telefonica in Spain, its O2 businesses in UK, Ireland, Czech Republic and Slovakia as well as new operations and partnerships in 23 other countries in western Europe. The European service will be managed by a dedicated 24 hour service management centre in Prague and is expected to go live in the Summer.

Telefonica chief operating officer and managing director Julio Linares said: “This contract reflects Telefonica’s strategic commitment to the multi-national corporate market and its ability to deliver integrated communications to global leaders like Deutsche Post World Net. Telefonica’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.”

Deutsce Post World Net chief financial officer and head of global business services John Allan said: “Deutsche Post World Net has grown through acquisitions and in some countries we operate multiple networks with multiple standards.

“We are delighted that Telefónica will manage and transform our network services across Europe over the next five years and help us pave the way for more cost efficiency throughout our operations.”