Nortel Wins $42M VoIP, Switching Contract for UK MoD
British Telecommunications (BT) has selected Nortel Networks multiservice switching and voice-over-IP solutions as part of its $2.7 billion Defence Fixed Telecommunications System contract extension with the British Ministry of Defence (MoD). The contract is estimated to be worth approximately $42 million to Nortel over the next two years.
The move mirrors a recent $20 million contract awarded to Nortel by the U.S. Department of Defense, in order to begin exerting more control over its networks and transitioning them to Voice Over IP (VoIP).
BT began modernization of the U.K. Ministry of Defence’s communications network in the late 1990s, and is tasked with providing wide-area network services to more than 2,000 locations, including voice services for more than 200,000 subscribers and Ethernet-based connectivity to 150,000 terminals. The British MoD is projected to save about $27 million annually as a result of greater operational and user efficiencies.
BT and Nortel have also jointly developed a $5.4 million dedicated testing facility called the Network Development Lab, in order to test services and applications for the planned ministry network. It will also showcase services for other government agencies and/or governments interested in similar projects.