Fujitsu deal boosts Telefonica

Telefonica is claiming a major coup over its European rivals, after winning a €30 million contract to be the sole provider of voice and data services for Fujitsu.
The four-year deal covers customer service management and after-sales in major Western European and Nordic countries including the UK, Germany, Spain, Netherlands, Italy, France and Sweden. Work to centralize management of voice and data services will be handled by the firm’s Multinational Solutions division
With 60% of the operations migrating to Telefonica for the first time, the contract is a significant win in the region, the operator states.
In addition to taking custom from its competitors, the deal should shore up Telefonica’s position in Europe. While its overall earnings in the region during 2010 were positive, the headline figures masked some weakness in its operations in Ireland and the Czech Republic.
Spain, the company’s home market, is stagnating, however results from the country are counted separately from the rest of Europe.
The firm’s domestic woes are making it a good buy for investors, financial news site Seeking Alpha notes, particularly due to the operator’s strength in Latin America.