Ryanair awarded an €8 million telecommunications contract for the management of its European network operations to the British firm Cable & Wireless yesterday.

Cable & Wireless will upgrade and manage Ryanair's internal and external communications networks and introduce a range of technologies such as voice over internet protocol (VoIP).

VoIP technology enables people to make telephone calls over internet networks rather than traditional phone networks, dramatically cutting call costs.

The new service introduced by Cable & Wireless will enable Ryanair personnel to make calls using a "soft phone" on their laptop when working from any of the company's European offices.