AT&T Inc. (NYSE:T) has announced a $4.5 million contract with leading marketer and merchandiser of entertainment products, Source Interlink Companies, Inc. (NASDAQ:SORC). The contract is for a wide range of communications and network services that will extend to more than 90 domestic and international locations.
The three-year deal will link network services and improve overall connectivity for Source Interlink and two acquired divisions, Alliance Entertainment, a global distributor of music, movies and game software, and the Primedia Enthusiasts Group, which publishes more than 70 magazines and 90 Web sites.
These new additions join previous Source Interlink acquisitions of companies in the wholesale magazine distribution industry, which all depended on a mix of various carriers and technologies for network services. In response to this string of acquisitions, Source Interlink is transitioning its legacy network services to AT&T's Internet Protocol (IP)-enabled Frame Relay network services, including Multiprotocol Label Switching (MPLS) capabilities. The AT&T MPLS solution will allow Source Interlink to seamlessly mesh different types of networking technologies, enable secure communication among locations using different communications protocols, and ease the integration of legacy network services.
"With locations ranging from tiny regional offices to major data centers, we needed a full suite of technologies that would scale in a cost effective fashion, both in terms of infrastructure and management services," said Linwood Ferguson, chief information officer, Source Interlink Companies, Inc. "We found AT&T to provide the deepest range of offerings to connect these diverse businesses together, especially when it came to smoothly integrating VPN-based solutions with MPLS. Of equal importance, AT&T had credible resources in place to provide for a fast, professionally managed implementation so our internal resources can focus on business integration instead of the network."
AT&T's contract with Source Interlink builds on a nearly 10-year relationship with Alliance Entertainment and includes AT&T's global Managed Internet Service (MIS) and AT&T Integration Solutions services, as well as voice services. -AT&T
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