BT has won back the Lloyds Banking Group voice and data network contract that it lost to IBM and Vtesse Networks in 2004.
Lloyds, which is 43%-owned by the government, confirmed the BT deal, believed to be worth around £600m. The contract, said to be one of the UK's biggest private sector network deals, was due for renewal this year. Sources say the contract was awarded to BT in mid-September.
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Sources familiar with the deal suggested that Lloyds secured a very competitive price, and expressed the opinion that "BT was working on a not-for-profit basis with this deal." BT declined to comment.
IBM won the 2004 £500m contract to provide a converged network that carried voice, data, video and supported some 70,000 Cisco voice-over-IP phones. Sources suggest IBM has not yet received a termination notice.
Vanco provided the network management and integration, and Vtesse the fibre-based virtual private network.
At the time, the bank had 2,500 branches and around 1,000 other sites. The IBM/Vtesse contract rationalised a number of data and voice networks supplied by more than 30 different suppliers.
According to reports, the handover to IBM was delayed by "contract wrangling" between the bank and BT.