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Fiat signs telecoms outsourcing deal with BT

BT has won a euro450m deal contract to run Fiats telecoms and bought an Italian telco into the bargain

Fiat has made BT its global telecoms provider in a deal worth euro450m over five years.

BT will also acquire Fiat subsidiary Atlanet for euro80m. The company provides domestic telecoms services to Fiat and other business customers across Italy.

Under the services agreement, BT will manage Fiat Group’s telecoms needs across 40 countries.

“This contract will enable Fiat to focus further on its core activities, while benefiting from BTs expertise in networked IT services,” the companies said in a statement.

BT expects to be able to generate annual cash cost savings of around euro20m by 2008, primarily through migrating traffic and consolidating networks. Atlanet will be integrated into BT’s Italian operations.

“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,” Andy Green, BT Global Services chief executive, said in a statement:

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

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