Deutsche Telekom, France Telecom-Orange's joint venture becomes operational

Deutsche Telekom (XETRA: DTE.DE) and France Telecom-Orange's (NYSE: FTE) "BUYIN" joint procurement telecom equipment purchase program goes live this week.

France Telecom-Orange Livephone Touch

France Telecom-Orange's Livephone Touch system

The two service providers initially announced the formation of the joint procurement venture in mid-April.

Out of its two operational units in France and Germany, the two service providers have grouped their procurement of both wireless (devices and network equipment) and wireline equipment and service platform under one jointly owned venture. Future activities include pilot projects that will include IT infrastructure and services.  

About 250 employees from the procurement divisions of both service providers will work at the two sites in Paris and Bonn.

In three years, Deutsche Telekom and France Télécom-Orange estimate they will be able to save €1.3 billion ($1.8 billion) on network equipment procurement costs. They believe that BUYIN will not only generate greater economies of scale and lower service costs for their customers, but also provide network equipment players a standardized way to service these two service providers.

For more:
- see the release
- Reuters has this article

Related articles:
FT Orange, Deutsche Telekom to save €1.3B annually with purchasing JV
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