1. Intelligence Alert: Fujitsu Stamps its C redentials as a Major National Wholesale IP Services Provider and Integrator in
Post Office C ontract
Report Date: June 04, 2012
Analyst: Stradling, Joel
Service: Business Network and IT Services
Market: Wholesale
Quick Take
Competitive Positives
• The Post Office is a strong reference client for Fujitsu and TalkTalk
• Fujitsu and TalkTalk gain a major indirect channel to broadband market
• The project lends w eight and positive momentum to Fujitsu’s and TalkTalk’s w holesale strategies
• Fujitsu’s ability to assemble uncomplicated OSS and billing is a competitive strength
• Fujistu has been involved in TalkTalk’s LLU and DSL strategy for many years giving familiarity
Competitive Concerns
• Revenues must be shared in w hat is a very competitive consumer market, w hich means slim margins
• The Post Office has the possibility of using other vendors, such as BT W holesale for voice
• There is no proof that the Post Office’s communications strategy w ill succeed or be profitable
• TalkTalk has been subject to negative public exposure on customer support
Event Summary
June 1, 2012 – Fujitsu w ill deliver broadband services combined w ith enhanced customer care and billing
solutions to the UK Post Office in a w holesale services contract. TalkTalk provides the broadband platform,
Capita the customer contact centre and MDS for consumer billing. BT W holesale controls the voice part of the
PO’s broadband and telephony offering. Fujitsu Netw ork Services UK & Ireland has been offering service to the
PO since 1996.
Analytical Summary
Perspective
• Positive on Fujitsu’s agreement w ith the Post Office, because this is a major indirect channel that underlines
Fujitsu’s position as a large provider of broadband and IP services. The Post Office is an established and
national entity in the UK, and as such its products are presented to a large consumer audience. As a result of
the deal, Fujitsu and TalkTalk are positioned to boost their w holesale scale. TalkTalk has unbundled more than
2,300 exchanges and is able to reach more than 80% of the UK’s population w ith ADSL2+.
Vendor Importance
• High to Fujitsu and TalkTalk, because the partners need to close such deals w ith UK communications providers
to realize new indirect channels to market. Fujitsu has been providing service to the PO since 1993, and Fujitsu
has also been significantly involved in TalkTalk’s LLU DSL strategy, and this latest deal builds on these histories.
Market Impact
• High on the UK w holesale market because TalkTalk and Fujitsu have planted a stake in the ground to claim
competitive parity against BT W holesale for major national w holesale broadband and telephony managed
service and infrastructure services. The type of account that Fujitsu has landed w ith the PO is challenging for
smaller national altnet competitors such as Level 3/Global Crossing, Colt and C&W to attract, and TalkTalk is
putting pressure on the main national rival operators Virgin Media Business and BT W holesale.

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