BT in link with Hewlett-Packard

13 April 2012

BRITAIN'S telecoms giant BT is set to team with US computer group Hewlett-Packard and bid for major technology contracts in America.

Andy Green, head of BT Global Services, said that an alliance in Europe to bid jointly for big computer contracts could be extended to the US.

Sources said that both BT and Hewlett-Packard - headed by Carly Fiorina - wanted to target IBM's lucrative consultancy customers.

In April it was revealed that the industry regulator, Ofcom, is considering breaking up BT to cut phone bills by 20%. The watchdog is conducting a review of the telephone system, which could have devastating consequences for BT.

Ofcom is concerned that 20 years after privatisation, BT still holds 70% - around 20m - of household accounts. It makes around £2bn a year profit.

The stranglehold stems from the fact that BT owns the telephone wires and exchanges. Although customers can switch to rival companies offering lower call charges, they still have to pay a line rental to BT.

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