BT deal gives Marconi £360m fillip

THE rehabilitation of Marconi continued today as BT, its largest customer, renewed the group's biggest contract for a further four years.

BT has re-signed Marconi to deal with its recabling and road-digging needs throughout London and in East Anglia and the East Midlands.

The new contract will ensure BT continues to upgrade its network to enable homes to receive state-of-the-art broadband fast internet access.

It is worth £360m over the four years, reckoned to be about £10m a year better than previous arrangements.

The longstanding partnership with BT is the largest single contract in Marconi's services division, which accounts for around 40% of group operations.

BT is also Marconi's single largest buyer of the telecommunications equipment that it makes.

The deal provides work for 320 Marconi field staff and a further 1,000 subcontractors.

'The contract renewal demonstrates BT's faith in Marconi's people and processes,' said Marconi director Mark Plato.

Marconi shares were 3 1/2p lighter today at 660p, off the highs of the spring but around 150% better than when they were relisted after the company's massive debt-for-equity rescue last year.