Tesco picks C&W for USD197m global network deal

Thu May 29 2008, 17:55 PM

Cable & Wireless is signing an exclusive GBP100m (USD197m), five-year deal to build a next-generation network for Tesco's UK and international operations. The network will have 40 times the capacity of Tesco's current network and will provide VoIP services as well as fixed-mobile convergence, which should both help to significantly cut Tesco's voice and data call costs.

Deal Details

In the UK, C&W will connect more than 1,800 Tesco sites including stores, regional offices and distribution centres in the UK. Internationally, it will roll out its network over 18 months to connect Tesco's operations in 14 countries, including China, India, Japan, the US and Turkey.

The news comes as C&W has made a preliminary approach of roughly GBP300m (USD593m) to rival telecoms provider, Thus.