Skanska receives new telecom assignments for British Telecom and Nortel Networks # Skanska#s share valued at a total of
Skanska receives new telecom assignments for British Telecom and Nortel Networks - Skanska's share valued at a total of about SEK 600 M Skanska has received two new telecom assignments in the UK for construction and maintenance work. One involves the construction and maintenance of British Telecom's external network for telecom and data traffic in the Thames Valley and London area. The three-year term contract is estimated at a total value of GBP 65 M, slightly more than SEK 1 billion. Skanska has 50 percent of the contract being carried out in a joint venture with the British service provider MG Telecommunications. Under the agreement with British Telecom, the Skanska/MGT joint venture will become the main contractor to BT in the Thames Valley for outsourced telecommunications cable installation services. The assignment includes copper as well as fiber optic cable for data and telecom traffic. As part of the agreement, the joint venture will take on 140 engineering and management personnel from Corning Cable Systems. The second assignment is for Nortel Networks. Skanska will be responsible for installation of telecom equipment, including fiber optic cable, mobile networks and switching equipment, for Nortel Networks customers throughout the UK and Eire. Initially, this assignment will be valued at GBP 6 M annually, about SEK 95 M. As part of the agreement, Skanska will take on 76 employees from Nortel Networks. "Outsourcing is a strong trend in the telecom sector. We foresee great future potential to grow through taking over planning, building and operations of the telecom companies' infrastructures when these companies are to an increasing extent focusing on the development of new services and service content," says Daniel Johannesson, member of Skanska's Senior Executive Team and responsible for the Group's telecom activities. Recently, BT Airwaves selected Skanska to design and build-out a nationwide telecom network for the Public Safety Radio Communications Service. Skanska is also building out parts of the Orange Network in the UK. For further information please contact: Daniel Johannesson, Executive Vice President, Skanska AB, Tel +46 8 753 88 00 Cheryl Eaton, PR Manager, Skanska UK, Tel +44 1923 423030 Tor Krusell, Senior Vice President Communications, Skanska AB, Tel +46 8 753 87 47 This and previous releases can also be found at www.skanska.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/05/20011005BIT00250/bit0002.doc http://www.waymaker.net/bitonline/2001/10/05/20011005BIT00250/bit0002.pdf