Tata, BT sign 5-year deal on international call handling

Tata Communications Ltd has signed a five-year agreement with the BT Group of the UK to share resources for handling international calls.

The voice service agreement will allow two of the world's largest providers of voice and IP services to mutually benefit from shared resources as part of a global supply arrangement, Tata Telecom said in release.

The company, however, did not disclose any financial details of the agreement, but said Tata would become BT's main supplier of voice termination services outside BT's footprint countries.

Through the five-year agreement, Tata Communications will become BT's primary supplier of international direct dial (IDD) and other voice termination services outside BT's own footprint countries and BT will become Tata Communication's main distribution channel for its IDD traffic into the UK, expanding into other markets across Europe as the relationship matures.

With additional capacity and flexibility, the relationship will allow BT and Tata Communications to benefit from each other's strengths as they develop and grow their businesses in their respective markets, the company said.

"Tata Communications is a leader in the international wholesale voice business, making them a perfect partner to help us achieve additional economies of scale to those of our own. We look forward to maximising the opportunities this relationship presents to both organisations as we expand our portfolio of wholesale products and services and ultimately strive to become even more competitive with our pricing," Brian Fitzpatrick, managing director of BT Wholesale Markets, said.

"We are proud to become BT's primary supplier of international voice termination services. The agreement will increase both partners' competitiveness and will enhance our respective service offerings. We are also very excited to have BT as our main distribution channel in the UK as we are confident that BT's resources and strong knowledge of the European market will be of great benefit to Tata Communications," Michel Guyot, president of Global Voice Solutions, Tata Communications, said.

The relationship will also provide greater economies of scale that will improve competitiveness of both in the international calls market.