MoD signs deal to upgrade Skynet

The Ministry of Defence (MoD) has signed a £2.5bn deal to provide the UK military with a state-of-the-art satellite communications network.

Under the terms of the 15-year private finance initiative (PFI), the Paradigm Secure Communications consortium has taken over the existing Skynet 4 system from the MoD and will upgrade to the new network by 2005.

Skynet 5 will use two new satellites and increase capacity to allow more simultaneous voice and data transfer.

Defence procurement minister Lord Bach says satellite links proved invaluable during Operation Telic - the codename for UK military operations in Iraq.

'Satellite communications are crucially important on the battlefield; they give our troops, their commanders and UK headquarters access to information across robust links,' he said.

'Skynet 5 will be a great improvement and is an excellent example of the importance we attach to investment in the most advanced communications for our forces in the field.'

The deal is the biggest PFI contract signed by the MoD. It will allow the military to buy a managed service from Paradigm, who will continue to own all the assets of the network.

The benefit to the MoD is that new technology can be introduced whenever it is appropriate, without the need for individual lengthy procurements, said a spokeswoman for the consortium.

Paradigm is a wholly-owned subsidiary of European aerospace group EADS.

EADS Astrium will lead the infrastructure delivery - building the satellites, upgrading the ground infrastructure and putting in the new ground control networks.

Paradigm Services will lead the service delivery arm including network management, customer support, technical refresh.

The other suppliers involved in the consortium are Serco, LogicaCMG, Cogent, General Dynamics, Cable and Wireless and Stratos.