Under the private finance initiative (PFI) contract, EADS [EADq.L], the aerospace company that manufactures Airbus aircraft, will build and run Skynet 5, a strategic satellite communications system, for the MoD.
The contract, which is with EADS’ Paradigm Secure Communications unit, will create or sustain 1,900 UK jobs.
Instead of buying satellites, the MoD is paying Paradigm, which already manages all existing MoD satellite communications systems, to provide services.
Skynet 5 will provide satellite communications services between the UK Army, RAF and Royal Navy and forces abroad. Skynet 5 would use at least two new satellites, taking over from the Skynet 4 satellites as they reach the end of their useful life.
The MoD said Skynet 5 is on target to achieve initial provision of new services from 2005, is within budget, and promises to deliver exactly the kind of flexibility and responsiveness the armed forces require.
Most of the 450 new jobs will be in Stevenage, Hertfordshire, with the others in Portsmouth, Corsham, Poynton, Leatherhead, and Newport, south Wales.
Under the terms of the contract, EADS will be responsible for all MoD satellite communications requirements, including the maintenance and operation of the complete ground infrastructure. That will include control centres as well as fixed and mobile facilities.
