Carillion in £500 million broadband deal


Carillion in £500 million broadband deal

A Carillion led joint venture has been awarded a support services contract extension by BT for bringing broadband to 33 mostly rural local authority areas.


The contract, part of BT’s Broadband Delivery UK (BDUK) programme, could be worth £500 million over three and a half years to Carillion and joint venture partner telent, a technology services specialist.  The Carillion telent joint venture (60:40) has been BT’s preferred infrastructure services supplier since 2010 and the new contract is an extension of an existing arrangement.


The BDUK programme aims to make super fast broadband available to rural communities across the UK. The joint venture’s work will involve civil engineering, cabling, poling and other infrastructure services.


Carillion Chief Executive Richard Howson said: “We look forward to working with BT to deliver BDUK, witch will make a vitally important contribution to improving the UK’s broadband network and creating real benefits for the UK economy.”


In a trading update this morning Carillion announced that its new order intake remained strong with the value of secured plus probable orders put at some £18Bn, and a pipeline of contract opportunities of £37Bn. Trading for 2013 remained broadly in line with expectations although total revenue would be lower than 2012 due to a rescaling of its UK construction business. Margins at the operating level would be similar to 2012.


Recent major UK contract successes included being named preferred bidder for the £800 million Airport City project in Manchester, over £200 million of highways projects. The BDUK contract could be worth £300 million to Carillion, today’s trading statement said.


Photo: BT