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Telefonica Wins $470 Million Contract With Deutsche Post / DHL

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Deutsche Post World Net the German based postal operator and owner of parcels firm, DHL has selected Telef nica to manage its communications services across 28 European countries over the next five years. Telef nica will become Deutsche Post World Net's primary fixed and mobile telecommunications provider in Europe and is expected to help the logistics group save over 150 million in costs over the period.

This agreement, with a total contract value of nearly €350 million (USD470 million), is Telefónica's largest pan-European combined fixed and mobile contract.

Telefónica will provide secure telecommunications services for 125,000 employees and 2,400 sites in Europe, and will transform Deutsche Post World Net's Internet Protocol (IP) network services. The service will be delivered by Telefónica in Spain, its O2 businesses in UK, Ireland, Czech Republic and Slovakia as well as new operations and partnerships in 23 other Western European countries.

The European service will be managed by a dedicated Service Management Centre in Prague and is expected to go live in early summer of 2009.

"Deutsche Post World Net has grown through acquisitions and in some countries we operate multiple networks with multiple standards," said John Allan, Deutsche Post World Net's Chief Financial Officer and Head of Global Business Services. "We are delighted that Telefónica will manage and transform our network services across Europe over the next five years and help us pave the way for more cost efficiency throughout our operations."

Telefónica will reinforce and extend its global IP backbone in Europe to provide services in 28 countries, including wide area network connectivity, centralized Internet access, local-area network (LAN) services such as wireless LAN, fixed voice, mobile voice and data as well as IT services such as managed security, web conferencing, unified messaging and fixed mobile convergence. The contract comprises more than 100,000 LAN Ports, more than 60,000 fixed voice devices and 80,000 mobile connections including 24,000 mobile and smartphone devices.

There are no job cuts planned at Deutsche Post World Net as part of the telecommunications streamlining.

Deutsche Post World Net is also seeking to optimise its telecommunications services in the United States, Latin America, Asia-Pacific as well as emerging markets, which is expected to lead to additional cost savings in 2009. As already announced, the Group aims to cut 1 billion euros in costs by the end of 2010.

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