The UK awarded the 10-year contract to provide a new defense fixed telecommunications system to a consortium led by British Telecommunications Plc over Racal Electronics Plc. Defense Secretary Michael Portillo said in a written parliamentary answer that the contract would be worth 700m British pounds but senior Defense Ministry officials later told Reuter the overall value of the contract would be closer to 1bn pounds over its 10-year life once user tariffs have been taken into account. Other members of the winning consortium include Lockheed Martin Corp and General Electric Co Plc.
