BT bags lucrative German outsourcing contract

23 Jan 2003

BT [BT.L] has announced that it has won a seven-year contract with the Bavarian State Government for the provision of a multi-protocol label switching (MPLS)-based IP virtual private network. The contract, estimated to be worth in the region of EUR200 million over the life of the deal, will see BT install network links in 2,000 locations in Bavaria providing fixed line voice services and internet access. Mark Logan, the head of BT Ignite, the British group’s business services and solutions subsidiary, claims the deal is further evidence that BT is regarded as ‘an international player with a strong presence in Germany’.

In a separate announcement, BT confirmed it has sold its 26% stake in French telco Cegetel to Vivendi Universal. The sale earned BT EUR4 billion in cash.