BT has won a contract to provide broadband and other IP services to the Welsh public sector in a deal worth up to £420 million.
The win, first reported by The Register, has been confirmed by sources close to the deal, although the Welsh Government declined to comment officially.
The ‘Public Sector Broadband Aggregation’ (PSBA) contract will start in November and will see BT provide IP services to public sector bodies across Wales, including councils, schools, hospitals, colleagues and emergency services.
The contract is open to any public sector body or organisation involved in public service delivery in Wales. It will run for seven years with options to extend to 14 years in total.
The PSBA was set up by Logicalis in 2007 and now supports over 90 percent of all major public sector organisations in Wales.
The loss of the contract will be a disappointment to Logicalis, which has delivered almost 5,000 connections since 2007 and earned over £200 million thanks to the deal.
The tender notice, which was published in August 2013, said that the Welsh government expects the winning supplier to sub-let short term contracts to other network providers.
It also said that the provider will need to evaluate and trial new networking technology during the contract and have “a track record in providing integrated network solutions as well as telecommunications.”
ComputerworldUK contacted Logicalis for comment but is yet to receive a response.
BT won a £425 million deal with the Welsh Government in 2012 to deploy superfast fibre broadband to 96 percent of homes and businesses by 2015.