T-Systems, KPN Partner

LONDON -- T-Systems and KPN have signed a five-year framework agreement to provide reciprocal IT and communications technology (ICT) services. Under the strategic nature of this deal, T-Systems will purchase international and national transport services from KPN where T-Systems has no or limited coverage and KPN will buy IT services from T-Systems. Through close co-operation involving key areas of each other’s businesses, both parties benefit from the other’s strengths. The agreement includes an outsourcing project and the sharing of network infrastructure in Western Europe. The relationship is non-exclusive and reflects the current trends in the ICT market.

John van Vianen, senior vice-president, KPN, said: “We have a long standing relationship with T-Systems in the telecoms area. On the back of this, we feel confident that T-Systems and KPN have the flexibility and stability to be reliable partners in the long term. This new agreement complements our existing relationship and will give us the opportunity to provide T-Systems with significant data- and IP services."

T-Systems and KPN already have a long standing relationship. For example, T-Systems provides outsourced printing and billing services to KPN for fixed and mobile network clients. KPN is a key network provider for T-Systems’ international backbone. Further areas of co-operation, including the complete service portfolios of both organisations, are currently being examined.

“Through this agreement, T-Systems will become a strong partner for KPN, providing numerous ICT services. This improves our positioning and the business opportunities open to T-Systems in the Netherlands, a key European market, increasing our competitiveness here and in other countries,” explained Kamyar Niromand, head of sales and service management, T-Systems Enterprise Services. In the area of international carrier services, the two operators will strengthen their mutual IP peering relationship to increase the use of each other’s data - and IP networks and to handle the tremendous growth in Internet traffic for both networks. Other areas of cooperation include the whole range of network, voice and mobile services.

Stephen Young, principle analyst at Ovum, explained: "The dream of end-to-end global networks has now been consigned to history, but customers still want international reach and ever increasing capabilities at the lowest possible prices. Scale is the name of the game, but no single player can do it all by themselves - Ovum has been predicting it for a while now, and this kind of partnership is the way to go."

KPN Telecom NV

T-Systems Inc.