BT lands Italian job

14 December 2005 Car giant Fiat has chosen BT to run its global telecoms for the next five years, in a deal worth just over £300 million (EU450m).

Under the agreement, BT will operate Fiat’s telecoms across 40 countries. As part of the agreement BT will also acquire Fiat’s Atlanet telecom services unit, which had previously run the automotive company’s communication infrastrucuture.

“BT is delighted to have been selected by such an established and respected Italian company to be its global provider, and is committed to developing a long-term partnership with Fiat that supports its transformation programme,” said Andy Green, CEO BT Global Services.

The deal is a significant coup for BT, as it looks to expand its global presence said Richard Mahony, senior analyst at research house Ovum.

“Overall, BT Italy has been strengthened through this transaction – its proposition is deepened through an extended network reach, its order book is bolstered and it has secured perhaps the glitziest account in the Italian enterprise market, which will only add to its local credibility,” he said.

BT’s management team expect to be able to deliver EU20 million in annual cost savings by 2008 through the consolidating Fiat’s network infrastructure and migrating traffic onto IP-based services.

The transaction is subject to regulatory approval and is expected to complete by February 2006.

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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