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Fujitsu, TalkTalk bag Post Office contract spurned by BT

Broadband platform manoeuvres for snail mail outfit

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Fujitsu and its strategic partner TalkTalk have won a contract that could be worth £500m to supply a broadband network to the Post Office.

BT had been the Post Office's previous provider, having inked a four-year deal in May 2007 with the national telco's wholesale wing supplying kit and customer support to make the national postal service an all-out broadband and VoIP reseller.

However, a BT spokesman told The Register that the company's wholesale division "gave notice" on its agreement with the Post Office in July last year because neither party could reach a mutual commercial deal to renew the contract.

"The Post Office has now found an alternative supplier in what is a highly competitive market and we wish them well," the spokesman added.

Fujitsu, which has been a partner to the Post Office since 1996, said it would design and deliver a next generation broadband product in cooperation with TalkTalk. It will also offered customer care and billing services with help from Capita and MDS respectively.

Times are somewhat tough over at BT's wholesale unit, which in the past year has been capped with regulatory prices, suffered falling quarterly sales and underwent a management shakeup in August last year - just one month after its contract negotiations with the Post Office were snuffed out. ®

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