Deutsche Telekom and France Telecom-Orange have signed a preliminary agreement to form a 50/50 joint venture in the fourth quarter to combine their customer equipment, network equipment, service platforms and IT infrastructure procurement. Initially, there will be four pilot projects in the IT infrastructure area. The operators anticipate that they will be able to make EUR 1.3 billion in combined savings on an annual run-rate after the third year, thanks to technology harmonisation and economies and scale. This is the next chapter in a partnership Deutsche Telecom and France Telecom-Orange announced on 11 February. This alliance will benefit customers and suppliers, who will be able to streamline development activities and generate further synergies, the companies said. The new entity will have two operational units in Bonn and Paris, staffed by employees from their respective procurement departments that already deal with purchasing customer equipment, network technology, service platforms, IT infrastructure and procurement engineering. Deutsche Telekom and France Telecom-Orange are currently in talks with unions and social partners regarding the set-up processes. The final agreement is expected to be signed in the coming weeks, and remains subject to the necessary board approvals at Deutsche Telekom and France Telecom-Orange, as well as antitrust clearance.
