BT wins back £600m Lloyds Bank network contract

BTLloyds BT has won back the Lloyds Banking Group voice and data network contract that it lost...

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.

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.

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