BT Group and Tata Communications Ltd., two of the world’s largest providers of voice and IP services, have signed a voice services agreement as part of a global supply arrangement.

Through the five-year agreement, Tata Communications will become BT's primary supplier of International Direct Dial (IDD) and other voice termination services outside BT's own footprint countries and BT will become Tata Communication's main distribution channel for its IDD traffic into the UK, eventually expanding into other markets across Europe.

By providing each party with access to additional capacity and flexibility, the contract will allow BT and Tata Communications to benefit from each others’ strengths as they develop and grow their businesses in their respective markets.

Brian Fitzpatrick, MD of BT Wholesale Markets, said: “Tata Communications is a leader in the international wholesale voice business, making them a perfect partner to help us achieve additional economies of scale to those of our own. We look forward to maximising the opportunities this relationship presents to both organisations as we expand our portfolio of wholesale products and services and ultimately strive to become even more competitive with our pricing.”

BT will also have access to Tata Communications' routing capabilities and on-line management systems providing greater economies of scale that aims to improve BT's competitiveness in the international calls market.