Posten Norden awards TeliaSonera and TDC with communication contracts

Posten Norden AB, the first postal company in the world formed through the merger of two national postal companies, has today announced it has contracted to TeliaSonera and TCD for telephony and data communication activities, respectively.

Posten Norden has a unique infrastructure for communication and logistics solutions throughout the Nordic region, delivering 29 million mail items a day and achieving sales of approximately SEK 42 billion.

The deal is one of the Nordic's largest in recent years, and will enable Posten Norden with integrated, efficient, quality assured communication systems, and meets the company's aims of reducing supplier numbers. Initially, the contracts will run for 4 years, at a combined value of around SEK 125 million per year, with the option for extension.

TeliaSonera is a telecommunications and ISP provider in the Nordic and Baltic countries, offering mobile and fixed network services. With 31,000 employees in 20 countries, the company recently released 2010 turnover figures of SEK 106.5 billion. The telephony contract is likely to relate to SEK 80 million per year, given that the company currently has 10,000 fixed subscriptions and 35,000 mobile subscriptions.

TDC is a telecoms and data services provider, and will supply Posten Norden with WAN and video conferencing solutions. The company recently announced 2010 turnover figures of DKR 26.2 billion. Posten Norden currently has 4,000 WAN connections and approximately 30 video conferencing solutions, which indicate that the value of the agreement is in the region of SEK 45m per year.

CIO of Posten Norden, Joss Delissen, made the following statement in relation to the new contracts:

"The new group-wide telephony and data communication solutions are further illustrations of the synergy effects made possible within the IT area through the formation of Posten Norden. After a coordinated Nordic procurement process, we will now have an even greater number of group-wide Nordic solutions while increasing our cost-efficiency and reliability. And by increasing our video conferencing options, we are also improving our environmental efficiency."

Author: Lee Marriott, Analyst