Siemens said on Tuesday its ICN fixed-line telecoms arm had won a deal to supply Internet Protocol (IP) services to US local phone company SBC Communications, confirming an earlier Reuters report.
The contract, which a Siemens spokesman said was the company's biggest yet in the United States, will run for five years.
Siemens did not put a value on the deal but industry sources said it was worth around $100 million.
IP is the standard method of transferring information across the Internet. It allows multimedia communications including voice-to-text and text-to voice and is an inexpensive way of sharing data among geographically remote workers.
ICN returned to profit in the quarter to December after a two-and-a-half-year slump as telecoms operators cut investment in new equipment.
It is still far off its target of reaching operating profit margins of eight to 11 percent by September, and last week announced it was cutting up to 600 manufacturing jobs in Germany to move production to lower-cost regions.