FRANKFURT, Germany -- International Carrier Sales & Solutions (ICSS), the carriers' carrier division of T-Systems, an-nounces the signature of a seven year strategic collaboration agreement with Aló Comunicaciones, a leading Spanish VoIP telephony and broadband provider.

The operators will collaborate to launch a broad range of telecommunications services in Spain, which are currently part of T-Systems' Service Offering Portfolio. The carriers will also use their respective networks for the termination of national and international voice and data traffic. The agreement will facilitate Alo's provision of wireless VoIP and broadband services throughout Spain, increasing their business in these areas.

"The future of broadband in Spain is very promising. With the tech-nical resources, experience and credibility of T-Systems, we will support the national objectives of making broadband and telephony services available throughout Spain," explains Alejandro Rivas-Micoud, Chief Executive, Aló Group. "After a slow start broadband in Spain has grown quickly and had achieved 15% household penetration by the end of 2003, just above the European average. The Spanish Government and telecommunications regulator is working hard to make sure broadband is available to all, and this is opening up exciting opportunities for both established and new broadband operators," outlines Michael Philpott, from Ovum.

The agreement with T-Systems will reinforce Alo's strategy and boost its objective of reducing the "digital divide", extending the availability of its broadband services throughout Spain, including newly built neighbourhoods and rural areas currently lacking Internet or phone services. T-Systems will help Aló launch a range of value-added solutions offered by ICSS, including short-messaging (SMS) to fixed lines and Wi-Fi Roaming to the Spanish market.

"This agreement shows our commitment to growth in the Spanish market and how T-Systems' flexible approach and ICSS' broad portfolio of value-added solutions help carriers to provide additional services to their end-users. In addition, this helps them become more competitive and generate additional revenues while focusing on their core activities," underlines Dr Juergen Graf, Senior Executive Vice President, T-Systems, ICSS. As part of the agreement, T-Systems will terminate the international voice and data traffic generated by Alo's client base of over 75,000 customers via its international net-work. Aló will provide its national network to terminate T-Systems' international voice traffic in Spain.

T-Systems Inc.