£250m Internet Protocol Deal Signed with BT
Barclays PLC
British Telecommunications plc
29 March 2000
Joint announcement by Barclays PLC and British Telecommunications plc
BARCLAYS PLC SIGNS £250 MILLION INTERNET
PROTOCOL DEAL WITH BT
Barclays PLC today announced that it had signed a five year deal with BT worth
approximately £250 million for provision and service of an Internet Protocol
(IP) based network. An IP network will enable all Internet traffic to flow
freely, and at speed, across all Barclays channels of delivery such as
branches, cash machines and call centres. This will mean that all 3,000 of
the bank's UK sites can deliver services and products via the Internet and is
a significant step towards Barclays achieving its wider strategic goal of
designing a single Internet-enabled platform for the entire retail bank.
Over the next 21 months or so BT's business-to-business division, BT Syncordia
Solutions, will migrate Barclays multiple networks to a single, company-wide
IP structure. At the heart of this network, BT will be integrating leading
edge e-commerce technology. As a result, Barclays customers will be able to
access banking products and services by mobile telephony through WAP (Wireless
Application Protocol), the Internet, cash machines and digital TV. In
addition, Barclays will also be able to participate in trials of new
applications, such as voice-over-IP with BT through Concert, BT's global joint
venture with AT&T.
This announcement reflects a key part of the strategy to develop Barclays
e-business vision as announced by Group Chief Executive, Matthew Barrett, at
the financial results presentation last month. An IP based network is a vital
part of behind-the-scenes infrastructure that will enable Barclays to push
ahead with its e-commerce initiatives and retain its position as the leading
Internet bank in the UK.
David Weymouth, Barclays Chief Information Officer, said:
'To compete effectively in the new economy, companies have to completely
change their business models to fully embrace e-commerce. This
ground-breaking agreement with BT will allow Barclays to do just that. By the
end of 2001 BT will be implementing an infrastructure to enable our customers
to access all products and services through electronic channels, driven off a
single platform. Barclays has a clear, strategic e-business vision which this
agreement with BT will help us fulfil.
'The IP network and other Barclays e-commerce initiatives will be on display
at an open day for analysts and the media in May. The Barclays 'e-day' will
provide an opportunity to get a comprehensive insight to Barclays e-commerce
plans.'
The deal also means that Barclays will be outsourcing to BT Syncordia
Solutions the operation of the existing Barclays UK and international data
network infrastructure. This supports branches, ATMs, data centres, campus
sites, call centres and a remote access service.
Humphrey Penney, general manager of BT Syncordia Solutions, said: 'I'm always
pleased to win a customer's confidence but this agreement with Barclays is
particularly gratifying, given the company's world class reputation and
standing in the financial services sector. The contract endorses our customer
promise - to deliver simple global solutions and services of an unprecedented
scale, scope and quality.'
For further information, please contact:
Pam O'Keeffe, Barclays PLC
Tel: 0207 699 2659
Jon Salmon, BT
Tel: 0207 356 5373
Niall Hickey, Concert
Tel: 0207 290 4133
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