Telecom Italia Wins Gov't Telephony Contract

ROME (06/05/2000) - Telecom Italia SpA has won a contract to supply fixed telephony services to Italy's state administration. The carrier's winning bid for the contract will save the state around 200 billion lire (US$98 million) on annual phone costs of approximately 300 billion lire, the Italian Treasury Ministry announced today.

The one year contract is the first to be awarded under a new centralized electronic procurement program managed by Consip SpA, a company specially created for this purpose by the Treasury Ministry. The contract will reduce the ministry's phone bill by 67 percent, the Treasury Ministry said in a prepared statement.

The contract provides for the supply of additional services such as a VPN (virtual private network), personalized telephone numbers, videoconferences and audioconferences at no extra charge, according to the statement.

The offer from Telecom Italia was selected over rival bids from the incumbent carrier's Italian competitors Infostrada SpA, Albacom SpA and Wind SpA, the ministry said.

A contract for the supply of telephone switchboards is expected to be awarded in a similar manner by the end of July and online bidding for a contract to supply cellular phone services for more than 25,000 cell phones is due to begin in the next few days, the ministry said.

Centralized electronic procurement for items such as personal computers, printers, photocopiers, stationery and other ministerial running costs is expected to produce savings of around 20 percent on overall administrative expenses of 6.5 trillion lire, the ministry added.

The Treasury Ministry can be contacted in Rome at +3906-4761-4605 or on the World Wide Web at Telecom Italia can be contacted in Rome at +3906-3688-2066 or on the Web at

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