€10m deal sees Eircom powering Tesco’s NGN

1 Jul 2008

Supermarket chain Tesco’s Irish base has chosen Eircom to provide its next-generation network (NGN) as it migrates to a single IP-only network in a five-year contract valued at over €10m.

Eircom will be the exclusive supplier of the data and voice services to Tesco Ireland using its Business IP product line.

This will connect up all 110 Tesco stores to headquarters and will integrate with the existing IP platform used by Tesco UK.

Apparently, this NGN will quadruple the current network capacity for Tesco and will mean that VoIP will be increasingly used as part of its phone system.

This spend was part of Tesco UK’s overall overhaul of its communications system for which £100m was allocated and which the retail chain hopes will bring savings of £10m sterling a year.

In the UK, this spend will include VoIP mobile phones for staff so they do not have to remain at their desk to take calls.

This new technology is said to benefit the customer too: installation of video kiosks will mean customers can get advice from experts in food, wine or home electronics while doing their shopping.

By Marie Boran

Pictured: Cathal Magee, managing director, Eircom retail and Geoff King, finance director, Tesco Ireland