BT term contract for Skanska – MGT joint venture

Press release 05/10/2001 00:00 CET

Skanska Networks UK and service provider MG Telecommunications have been assigned a term contract for work in the British Telecommunications plc Thames Valley region. It includes copper and optical fibre cable installation and maintenance for aerial and underground cables and duct.

Under the new agreement a Skanska-MGT joint venture will become the main contractor to BT in Thames Valley for out-sourced tele-communications cable installation services worth an estimated £65m. In addition the joint venture will take on Corning’s copper installation workforce and its fleet of vehicles to ensure continuity of service. As part of this agreement Corning Cable Systems will continue to provide optical fibre cable installation services as the optical sub-contractor to the joint venture.

The move is a major step in the implementation of Skanska’s telecommunications strategy following the launch of Skanska Networks UK as an independent business stream earlier this year. Skanska Networks’ divisional manager (fixed networks) Kevin Monaghan said, ‘‘The transfer of this contract to Skanska moves us up the supply chain and creates an opportunity for us to exploit our newly acquired skills across the whole fixed and broadband telecommunications market.’’

This latest project follows the selection of Skanska to participate in the BT Airwave PSRCP project and Orange mobile networks expansion plans in the Home Counties and the Thames Valley. Skanska is already a member of a worldwide alliance with Nortel Networks and, in August, Skanska Konnect became one of only two preferred suppliers to be chosen to implement Nortel Networks equipment build and test operations at clients premises throughout the UK.