AT&T said yesterday it will build and manage global IP (Internet Protocol) networks for General Motors and for Delphi Automotive Systems in contracts worth $US510 million.
The GM contract, valued at $350 million, calls for the replacement of the automaker's multiple networks with a network set up by AT&T Solutions, the company's professional services subsidiary, AT&T and GM executives said.
GM and AT&T Solutions will also standardise and manage future development of GM's IT infrastructure throughout its global operations, the executives said.
AT&T Solutions will also deploy networking capabilities that allow GM teams to work together in design facilities in Michigan, Brazil, Germany and Singapore.
"This network agreement fits perfectly as a piece with GM's strategy of globalisation and with its e-business thrust," Bob Chaffin, director of finance and contract management for GM systems and services said.
The networks "will fundamentally change the way AT&T and Delphi conduct business in the 21st Century," Rick Roscitt, president and chief executive officer of AT&T Solutions said.
AT&T Solutions will work closely with Electronic Data Systems (EDS), GM's current primary network and computer services provider, to ensure continued operation of legacy systems while the next-generation IP network is being built.
EDS chose not to bid on the contract, but will continue to provide GM with other IT services, Chaffin said.
The network will provide connectivity among GM's 1,100 locations in more than 40 countries.
The telephone company will also provide GM with domestic and international inbound and outbound long-distance voice, data and video services, local phone service via AT&T Digital Link and corporate calling cards.
AT&T Solutions will use the services of Concert, the joint venture between AT&T and British Telecommunications, which will provide global transport for voice and data services. Together, AT&T Solutions and British Telecom Syncordia Solutions, BT's network outsourcing subsidiary, will provide managed data, voice and video services in Europe, Asia and Latin America. BTSS also will manage relationships with local phone companies overseas.
GM's network will utilise IP-over-SONET (synchronous optical network) capabilities -- including voice over the Internet (VoIP) transmission -- at GM's five-building headquarters campus in the Detroit-Warren, Michigan, area. AT&T will engineer the network to interface with Automotive Network eXchange (ANX), an IP-based extranet created by the automotive industry to enable electronic commerce and data exchange.
AT&T is a certified service provider for ANX. AT&T Solutions will manage GM's networking capabilities from its Global Client Support Center in Dublin, Ohio, via the AT&T Solutions Global Enterprise Management System (GEMS). GEMS offers networking management capabilities -- including predictive management -- by integrating proprietary software developed at AT&T Labs with third-party software.
The contract with Delphi will allow the automotive component and systems technology company to link its global locations with more than 2,800 suppliers and customers in a unified virtual private network.
The five-year $160 million agreement calls for AT&T Solutions to replace Delphi's existing networks with an IP backbone network that will help Delphi manage information on a real-time basis.
Delphi operates 168 wholly owned manufacturing sites, 38 joint ventures, 51 customer centers and sales offices, and 27 technical centers on six continents. Formerly part of General Motors, Delphi was established as an independent, public company in May.