1 April 2005 The British Ministry of Defence (MoD) has extended its contract to provide a voice, data and video network with telecoms giant BT. The extension is worth an extra £1.5 billion.

Under the terms of the deal BT run the MoD’s Defence Fixed Telecommunications System (DFTS) and is expected to save the Department £15 million each year through rationalising the services provided, and lowering its tariffs.

The extension provides for the introduction of a new digital core network and stable wider area network services which Lord Bach, the Minister for Defence Procurement, said “will be critical to the successful deployment of the Defence Information Infrastructure (DII) Future project.”

The outsourced DII contract is aimed at replacing disparate legacy systems and enhancing systems interoperability across the forces.

Ben Verwaayen, BT’s CEO said: “The new extension is, in part, based on our excellent track record and also on our commitment to invest significantly in new secure digital network technology.”

He said the contract brought “the benefits of the Digital Networked Economy a step closer for the MoD.”

The extension, until July 2012, brings the total value of the (DFTS) Public Private Partnership to over £3 billion.

In March 2005 the MoD awarded the £2.3 billion DII Future contract to EDS.