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FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM FORM STRATETIC ALLIANCE

 BRUSSELS, Belgium, Dec. 7 /PRNewswire/ -- France Telecom (FT) and Deutsche Bundespost Telekom (DT) today announced plans to create a global strategic alliance. At a press conference held today in Brussels, France Telecom chairman Marcel Roulet and Helmut Ricke, chairman of the supervisory board of Deutsche Bundespost Telekom, stated: "Our strategic alliance is the result of an in-depth dialogue, during which both operators have gained a new vision of their long- standing partnership in a fast-growing market." The goal of the alliance is to create a joint venture company which will provide advanced telecommunications services to corporate and business customers.
 According to the Memorandum of Understanding signed today in Brussels between France Telecom and Deutsche Bundespost Telekom, the two operators will hold equal shares of the new company. The venture will provide X.25 switched data, frame relay and IP (Internet protocol) services, as well as virtual private data network services, international end-to-end digital circuits, VSAT services, international virtual private voice networks and other voice value-added services. These services will use a single backbone network and have common network management systems.
 The joint venture will initially build from activities transferred from existing entities of the two carriers, such as Transpac and its European subsidiaries, and Datex-P in Germany. Other France Telecom entities (including some units of France Cables et Radio-FCR) and DT units, as well as Eunetcom, will also be transferred to the new joint company. The new company will be operational in early 1995. It will quickly grow to a size of 4,000 employees with revenues of 1.5 billion Ecus during its first year of operations. It will invest approximately one billion Ecus over the next five years.
 The new joint venture is designed to be a premier provider of the major services required by corporate and business customers with international activities, which require high-performance telecommunications services to support their efforts to gain market shares. The company will offer competitively priced services, centralized billing, one-stop shopping and global customer support. The new company will distribute and sell its products and services on all markets under a joint brand.
 The new company will be headquartered in Brussels, with corporate offices and central operational units in France and Germany.
 The customers of the joint venture will benefit from two very significant advantages for their telecommunications networks:
 -- First, a seamless and homogenious service offering which allows the development and marketing of extremely sophisticated services that are indispensable to the successful growth of international business;
 -- Second, a one-stop shopping offer which will provide each customer with a single point of contact, wherever it might operate in Europe, thus guaranteeing unrivaled efficiency.
 France Telecom and Deutsche Bundespost Telekom view this strategic alliance as a major undertaking to provide a comprehensive range of competitive, innovative high-value services on a worldwide base. Given the global scope of the activities of the new venture, access to the North American and Asia-Pacific markets may be achieved through cooperation with other partners.
 France Telecom and Deutsche Bundespost Telekom understand their cooperation as a contribution to Europe's overall economic development by joining strengths in the competitive environment of liberalized telecommunications markets. All activities of the new company are in sectors fully opened to competition and not subject to monopoly control. Furthermore, these activities will be pursued in total conformity with the rules of competition defined by the European Commission.
 These arrangements will not compromise any existing bilateral correspondent agreements already established with all other international carriers.
 -0- 12/7/93
 /CONTACT: Kimberly Steiner of France Telecom, 212-332-2114/


CO: France Telecom; Deutsche Bundespost Telekom ST: IN: TLS SU: JVN

JG-LG -- NY009 -- 1177 12/07/93 09:43 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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