BT Extends MoD Deal

LONDON -- BT today announced a three-year extension to the Defence Fixed Telecommunications Service (DFTS) Agreement with the Ministry of Defence (MOD) to 2015.

The contract extension is expected to be worth £640m in revenue to BT over the three-years to 2015. The funding comes from an £810 million fund allocated by the MOD for fixed telecommunications services and other purposes.

Under the terms of the extended contract, the MOD will benefit from improved ability to access and share secure information, while still meeting stringent security requirements. Personnel on active duty will have access to the information they need, as soon as they need it.

As part of the extension of the current DFTS Agreement from 2012 to 2015 a transformation programme will begin immediately. BT will manage a number of implementation projects including a major upgrade to the network over which the service is provided. This will improve application and security performance even further through an increase in available bandwidth and a reduction in latency.

BT Group plc (NYSE: BT; London: BTA)