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Videotron and Tata Communications sign strategic outsourcing agreement

January 17, 2011
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Tata Communications, a global communications service provider and Videotron, one of Canada’s largest integrated communications companies, today announce that they have signed a mutually beneficial sourcing agreement. Under this agreement, Videotron will route 100 per cent of its international voice traffic through Tata Communications network and Videotron will continue to be one of Tata Communications’ key suppliers of telecommunication services in Canada.

This is a win-win partnership for both companies. Through it, Tata Communications will become Videotron’s sole provider of international voice termination. By tapping into Tata Communications’ extensive and robust voice infrastructure, Videotron will be able to offer its customers higher quality international calls at competitive rates. Tata Communications’ advanced voice traffic management tools will also allow Videotron to effectively manage operational costs and increase focus on its core businesses and key growth areas.

Tata Communications’ strategic voice traffic outsourcing enables providers to leverage Tata Communications’ scale and routing expertise while reducing their exposure in the low-margin, high-risk international voice termination business.

Jean Novak, president, Videotron Business Solutions, said: "Tata Communications is a recognized leader in the international wholesale voice business, with the most extensive network globally, making it a perfect partner to help us achieve economies of scale. We are confident this partnership will provide enhanced international call service quality to our subscribers, boosting our standing in the market place and cementing our position as one of Canada’s leading telecommunication providers.”

Michel Guyot, president, global voice solutions, Tata Communications, said, “We are proud to become Videotron sole provider for international voice termination and benefit from Videotron’s strengths in the Canadian marketplace. Our flexible partnership model has made this strategic sourcing agreement with Videotron possible. The confidence that Videotron has showed in our solutions only reiterates that we can replicate in North America, the successes we are enjoying in other parts of the world. The solutions that we offer allow our customers to become more competitive in their regions by reducing costs, streamlining operations and improving service quality, while allowing them to focus limited resources on core services and key growth segments.”

Tata Communications’ flexible partnership approach includes route outsourcing and infrastructure sharing. Videotron will be able to grow their voice revenues while reducing capital commitments to traffic management platforms, back-office capabilities and next-generation IP networks.


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