infoTECH Feature

June 26, 2009

BT Outsources Global Voice

By Gary Kim
BT Group and Tata Communications (News - Alert) have signed a five-year agreement that outsources BT's global voice business outside BT’s own footprint countries. As part of the deal, BT also will become Tata Communications’ main partner for terminating international voice traffic
into the United Kingdom.
 
The move illustrates a major change in the global voice business, which is low margin and is attractive only to players with scale. Basically, BT (News - Alert) is outsourcing much of its international long distance operation as a way of defending its profit margins.
 
The deal also gives Tata and BT a bit more control over their costs, as the deal essentially removes both parties from the existing bilateral commercial contract regime, at least for calls terminated on either network.
 
 

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Jessica Kostek
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