Equant wins $100m STMicroelectronics contract

Equant has landed more than $100m in business from European chips company STMicroelectronics.

Geneva-headquartered ST will consolidate over 20 service provider contracts across 34 countries, as it outsources its entire data and voice - both fixed and mobile - communications to the global network provider.

The multi-year move follows a deal signed in 2003 for Equant to provide customised IP VPNs - for secure networking - to the chip-maker.

STMicroelectronics VP infrastructure and services Otto Kosgalwies said that the latest, far-reaching move is because his company wants to focus on its core business and reduce its communications costs by 15 to 20 per cent.

Some would have placed Equant, out of the big international network providers, as favourite to win the business. It is owned by France Telecom and that telco also owns a stake in STMicroelectronics.