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August 18, 1988

BT ORDERS 729,000 MORE LINES

By CBR Staff Writer

British Telecommunications Plc has placed a further UKP85m in orders for 729,000 lines of digital exchange technology, one third of which formed Tranche 15 and was tendered for competitively. No separate figures were given for the Tranche 15 element but Thorn Ericsson was awarded roughly 20% with GEC Plessey taking the lion’s share. The latter won 684,000 lines in total, and the majority was allocated under a fixed supply contract agreed earlier this year. Thorn Ericsson agreed a fixed price shopping list with British Telecom in 1985 which expires this year. The contract set prices for AXE 10 components known as System Y technology, supplied as extensions to existing System Y sites. Thorn Ericsson is currently renegotiating this contract to form an agreement similar to the one struck with GEC Plessey. Discussions are expected to speed up once Ericsson buys Thorn EMI’s stake to assume 100% control of the subsidiary next month.

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