The UK based communications provider BT, has announced a three-year extension to the Defence Fixed Telecommunications Service (DFTS) agreement with the UK Ministry of Defence (MOD)to 2015.

The communication provider said that the contract extension is expected to be worth £640m in revenue to the company over the three-years to 2015.

Under the terms of the extended contract, the MOD will benefit from improved ability to access and share secure information.

As part of the extension of the current DFTS agreement a transformation programme will begin immediately.

BT will manage a number of implementation projects including a major upgrade to the network over which the service is provided.

BT Global Services CEO Jeff Kelly said that this agreement has already delivered financial savings and operational efficiencies for the MOD.

"This transformation programme will offer the MOD better capabilities at the same time as offering financial savings," Kelly said.

The DFTS Agreement, signed in July 1997, began by transforming the 19 separate telecommunication networks, serving the Royal Navy, the British Army, The Royal Air Force, and the MOD itself, into a single multi-service platform.