JCDecaux snatches phonebox contract from Clear Channel

Jeremy Male, UK chief executive at JCDecaux said: "This is a great opportunity to market a product that has universal penetration and is an integral part of the cityscape. It is an urban medium with a presence in all the key city centres providing huge reach against the highly sought after youth audience."

Nigel Stagg, managing director for enterprises at BT Retail, said: "JCDecaux has demonstrated a real understanding of our business and it will be investing in the sales and marketing infrastructure to realise the full potential of the business."

The current advertising contract is held by Clear Channel, which has held the rights under the Adshel Connect brand for the past two years.

Clear Channel Outdoor UK chief executive Barry Sayer, said: "BT has fully acknowledged Clear Channel's success in marketing the Connect medium. We have far exceeded forecast and budgeted expectations.

"During strategic renegotiations instigated by BT, we offered a minimum guarantee well in excess of the total revenue generated by Connect.

"We were not prepared to go any higher as we believe to offer any more would have been unprofitable and not in our shareholders' best interests.

"Clear Channel will continue to offer our clients the opportunity to advertise on our 6-sheet format which currently numbers 41,000 roadside units together with 4,700 non-roadside units across the UK."

The win for JCDecaux comes as it battles Clear Channel in its native France for a contract to supply Paris with 6,600 bicycles as part of a plan to bring down pollution in the city. The deal includes control of the city's ad hoardings, which generate £20m in revenue each year. JCDecaux has held the business, via its Somupi subsidiary, since 1976.

At the beginning of the month, JCDecaux won the 10-year, estimated $200m (£108m) contract for advertising and naming rights at the world's fourth largest airport, LAX, which has not previously had an advertising contract.

The company beat competition from Clear Channel to land the deal, which also includes Ontario Airport in San Bernadino, from the Los Angeles City Council and bolster its strong position in the airport sector.

The French-owned company is also reported to be part of the bidding process to pick up smaller outdoor player Primesight, put up for sale by parent company SMG in September. JCDecaux is believed to be in the running, along with fellow outdoor players Viacom Outdoor and Titan.

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