BT, Nortel Win Big Contract

LONDON -- BT is partnering with Nortel* [NYSE/TSX: NT] as its main supplier to deploy a nationwide communications network that will be used to provide secure managed voice and data services to the UK Ministry of Defence (MOD) and British Armed Forces.

The deployment is part of a five-year extension of the Defence Fixed Telecommunications Service (DFTS) contract with BT – worth up to £1.5 billion to BT – to build and manage the UK MOD’s mission critical telecommunications infrastructure.

Using Nortel multiservice switching and voice over IP (VoIP) solutions valued at US$42 million, the new network will be built out over the next two years. It is expected to provide improved security and responsiveness for the UK military and greater operational and end user efficiencies, resulting in an estimated savings of £15 million per year to the UK MOD.

The infrastructure will provide stable wide area network services in over 2,000 locations, including voice services to over 200,000 subscribers and common Ethernet-based connectivity to 150,000 terminals.

"We are working closely with Nortel to improve the effectiveness of the UK’s defence communications network and the services it provides,” said John Anderson, director, BT Government. “Today’s announcement extends BT’s successful management of the DFTS network since 1997 with a roll-out of consistent improvements and developments.”

To ensure the smooth migration of current services and applications across the new multiservice network, BT and Nortel have jointly developed a dedicated testing facility for the MOD network. At a cost of over £3 million in technology alone, the Network Development Lab (NDL) is a captive replica of the MOD’s telecommunications network. Officially opened today, the lab includes all existing equipment currently deployed in the UK MOD network, along with all new equipment being procured as part of the network evolution.

“The joint BT-Nortel lab will enable new technologies and services to be fully proven prior to delivery to the MOD, ensuring optimum service performance and quality,” Anderson said.

“The communications technology decisions made by the MOD help determine the UK military’s ability to operate efficiently, effectively and securely,” said Chuck Saffell, president, Federal Solutions, Nortel. "Nortel worked closely with BT and the MOD to custom-design a solution to support mission-critical communications while reducing operational costs and increasing the efficient use of existing infrastructure."

BT Group plc