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Sat April 20 2024

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Carillion JV renews Openreach deal

2 Feb 17 Carillion’s joint venture with telecoms company Telent has secured an extension to its framework agreement with Openreach in a deal worth up to £1.5bn.

Carillion Telent will continue to provide Openreach with services including the maintenance, extension and repair of the telephone and data network in the North East, Midlands & Wales, South West and London & North Home Counties of England.

The three-year extension also includes the delivery of asset assurance works, notably poling and related activities, for England and Wales. The initial extension runs until the end of 2021 but two further years could be added, subject to performance.

Carillion Telent, a 60:40 JV, has already been working for the BT subsidiary for eight years. It has been Openreach's main delivery partner for the management, maintenance and upgrading of its broadband network.

The framework is expected to generate up to £900m of revenue over three years (Carillion's share is more than £500m) and potentially up to £1.5bn over five years (£900m for Carillion).      

Carillion chief executive Richard Howson said: "We are delighted to have agreed this extension to our framework agreement with Openreach that reflects the strong partnership we have built with Openreach over the last eight years as its main delivery partner for the management, maintenance and upgrading of its broadband network.  We look forward to continuing this relationship and to supporting Openreach in delivering its objectives for further enhancing the services it provides for its customers."

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