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Deutsche Telekom and France Telecom announce purchasing JV

Deutsche Telekom and France Telecom-Orange have agreed to combine their procurement activities for customer equipment, network equipment, service platforms and IT-Infrastructure in a 50/50 joint venture.

The companies said the deal expects to save them between €400 million and €900 million over a three-year period.

“I am very excited to announce this new project with Deutsche Telekom. By combining our procurement activities, our customers will benefit from the best networks, improved services and the widest choice of devices across our footprint,” said Olaf Swantee, executive vice-president Europe and sourcing at France Telecom-Orange. “The new joint venture will offer a more efficient sourcing organisation that will lead to more effective partnerships with suppliers. This will enable us to drive innovation and shape the development of technology in a way that meets customers’ needs.”