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Deutsche Telekom, France Telecom Set Up Purchasing Venture

time April 18th, 2011 by author David Goldstein

France Télécom logoDeutsche Telekom T logoDeutsche Telekom AG and France Telecom SA, will set up a venture that will let the two former phone monopolies save €1.3 billion ($1.9 billion) annually by jointly buying telecommunications equipment.

Under a non-binding agreement signed today, the companies will start joint purchases of phones, network equipment, service platforms and other technology infrastructure in the fourth quarter. Paris-based France Telecom will save as much as €900 million annually after three years and Bonn-based Deutsche Telekom more than €400 million.
www.bloomberg.com/news/2011-04-18/deutsche-telekom-france-telecom-agree-on-procurement-venture.html

Also see:

Deutsche Telekom and France Télécom will shop together [IDG]
Deutsche Telekom and France Télécom are joining forces to increase their collective buying power, and negotiate better deals on mobile networks and smartphones. The two network operators will pass some of the savings they hope to realize on to their customers, they said Monday.

The two companies have agreed to form a joint venture later this year to buy smartphones and equipment for their respective mobile networks. At a later stage, they will also buy hardware and software for their internal IT infrastructures, beginning with pilot projects for servers and storage. Between them, the companies expect to save around €1.3 billion (US$1.9 billion) per year after three years through economies of scale and operational synergies.
www.computerworld.com.au/article/383595/deutsche_telekom_france_t_l_com_will_shop_together/

Telecoms groups team up on procurement
Deutsche Telekom and France Telecom will achieve €1.3bn in annual savings by merging key procurement activities in Europe as they press ahead with a programme to cut costs
www.ft.com/cms/s/0/0239e022-69cb-11e0-826b-00144feab49a.html

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