Equant Wins $144M Outsourcing Contract

Equant signs six-year, $144M communications outsourcing deal with Japan Tobacco's international division

April 20, 2004

2 Min Read

GENEVA -- Equant (NYSE: ENT) (Euronext Paris: EQU) has signed a six-year, $144 million communications outsourcing contract with JT International (JTI).

Based in Geneva, Switzerland, JTI, the international operating division of Japan Tobacco Inc., has outsourced its telecom services in 47 countries, representing more than 240 sites, to Equant.

As part of this outsourcing deal, Equant will provide a full set of communications services to JTI, including data services based on IP VPN, Internet access, managed security services, remote access services, LAN management, voice over IP and IP telephony, contact centers as well as fixed and mobile voice services. This deal also includes the transfer of JTI's telecom assets and its telecom vendors' contracts to Equant, representing several thousand pieces of equipment.

JTI expects to operate its communications services on a global basis while gaining maximum flexibility in each country using the same partner worldwide. Additional key benefits of the agreement with Equant include:

  • Consolidating from several hundred telecom vendors to one,

  • Receiving the high level of network security required by large multinational corporations,

  • Optimizing its overall telecommunications infrastructure on Equant's converged IP VPN platform,

  • Having end-to-end service level agreements worldwide.

"This deal is first of all, the result of the high degree of confidence in Equant developed and reinforced during our past collaboration and preliminary work on a joint assessment of the opportunities entailed in such a large outsourcing project," said Martin Braddock, chief financial officer of JTI. "JTI will certainly benefit from Equant's outsourcing expertise both in terms of efficiency and cost savings, since Equant is now our single and only telecom provider across more than 240 sites in 47 countries."

"JTI has complete confidence in the Equant team, with unparalleled experience and know-how to tailor solutions that exactly meet our core business requirements," added Steve Riddle, vice president and chief information officer of JTI.

"We are very proud to provide the worldwide communications infrastructure of such an industry leader," said Michel Picaud, senior vice president and head of Equant Global Solutions. "This demonstrates Equant's unmatched capabilities to offer complete end-to-end international communications outsourcing services for corporate users."


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