Tesco has sealed a five-year £100m contract with Cable &Wireless (C&W) to create an innovative telecommunications network for the retailer’s UK and international operations that is expected to save the company up to £10m per year.
The overhauling of Tesco’s current telecommunications network will involve C&W exclusively supplying data, fixed and mobile voice telecommunications to the retailer for five years, streamlining the group’s existing systems into a single IP network .
The network is expected to connect more than 1,800 Tesco sites including stores, regional offices and distribution centres within the UK, and will also directly connect Tesco’s operations in more than 14 countries including China, India, Japan, US, Ireland and Turkey .
The network is expected to connect at a speed of 10Mbps – roughly 40 times the speed of the retailer’s existing connections – and will be built on Cable &Wireless’ Multi Service Platform (MSP).
Tesco said the implementation of mobile VoIP phones will be of great benefit to its employees, allowing them to use their mobile phone as a fixed line phone in the office, and for roaming when outside.
The VoIP platform on the network will also allow remote experts to advise customers on the best wines or gadgets via video kiosks; transmit regular video pep-talks for employees by Tesco executives; and cut costs by routing calls through Tesco’s internal network .
Nick Folkes, IT director for UK infrastructure and operations at Tesco, said: “Of 14 central bidders, Cable &Wireless was the only company that understood our needs, and sought to provide network solutions that fully met them.”
“This next generation network opens up a new set of opportunities for us. We can be much more creative in terms of the services we can offer our customers, as well as our staff.”
Folkes added that the next-generation network could also help Tesco realise its target of cutting its CO2 emissions in half by 2020, by allowing more videoconferencing and intelligent systems that adjust heating, lighting and cooling at stores and offices to minimise wastage.
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