Press Release
May 6, 2004
BAA Agrees £46.6 Million ICT Deal with BT
BT today announced a new £46.6 million deal with BAA, the world's leading airport operator, to deliver managed voice and data services at Gatwick, Heathrow and Stansted. Under the terms of the five-year agreement, BT will upgrade the existing data network to an agile IP infrastructure, as well as providing voice services and consultancy to support BAA's flexible working strategy.
Through an innovative commercial model, BT will also open up a potential new revenue stream for BAA. The agreed commercial framework between BT and BAA allows BAA to provide information and communications technology (ICT) services to tenants at each airport as part of a joint marketing and sales initiative. Retail concessionaires, airlines, freight companies and other businesses based at the airports will be able to benefit from BT's ICT expertise.
Colin Hargrave, BAA Retail Director, UK Airports, said: "We are constantly seeking ways in which we can become more competitive and offer our customers a better service. Through working with BT we have identified a new market opportunity to explore, while at the same time deploying new technologies internally that will transform the way in which we work. Their understanding of our business and the airport environment made BT the obvious choice."
The solution encompasses:
- Upgrading the existing data network to a fully managed IP infrastructure. This highly flexible Multi-Protocol Label Switching (MPLS)-based wide area network supports differential classes of service which will allow BAA to prioritise network traffic, optimise performance and maximise efficiency
- Developing BAA's mobile working strategy by sharing BT's best practice. This will encompass the provision of up to 1000 Blackberry devices
- A managed broadband service to facilitate flexible working
- Managed mobile voice services supporting in excess of 2000 users in addition to the continuing provision of traditional fixed-line voice services
- A helpdesk for BAA's employees and tenants encompassing queries, requests for new telecommunications services, troubleshooting and fault management
Colin Mattey, director, Commercial and Brands, BT, said: "This new commercial model demonstrates our focus on the effective use of ICT – in BAA's case to provide a platform to boost their own productivity and efficiency, and open up a new revenue channel. We are confident that our network-centric approach will allow BAA to change the way in which it operates. Whether it is voice and data infrastructure management or advanced mobile working solutions, we can offer consultancy, share best practice and deploy services that will help BAA to transform their business."
This deal follows on from BT's agreement with BAA announced in February 2004 to install and manage up to 180 Internet Kiosks and 350 payphones at Heathrow, Gatwick and Stansted. BT has also deployed Wi-Fi hotspots in BAA airport terminals, giving visitors to the airports secure and fast connection to corporate networks while working "on the pause" away from the office.
About BT
BT Group plc is the listed holding company for an integrated group of businesses providing voice, data and video services in the UK and elsewhere in Europe. British Telecommunications plc, a wholly owned subsidiary of BT Group, holds virtually all businesses and assets of the BT group.
BT is one of Europe's leading providers of telecommunications services. Its principal activities include local, national and international telecommunications services, higher-value broadband and Internet products and services, and IT solutions. In the UK, BT serves over 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other licensed operators.
BT consists principally of three lines of business:
- BT Retail, serving businesses and residential customers and including BT Openworld, one of the UK's leading ISPs.
- BT Wholesale, providing network services and solutions within the UK, including ADSL, conveyance, transit, bulk delivery of private circuits, frame relay and ISDN connections.
- BT Global Services, BT's managed services and solutions provider, serving multi-site organisations worldwide. Its core target market is the top 10,000 global multi-site organisations with European operations.
There are a number of other businesses within the BT group, including BT Exact, an internationally renowned centre of excellence in IT and networking technologies. It is also BT's technology and research and development business.
In the year ended 31 March 2003, BT's turnover was £18,727m. with profit before goodwill, amortisation, exceptional items and taxation of £1,829m. For more information, visit www.bt.com
About BAA
BAA is the world's leading airport company. Its airports are at the heart of the global travel network. BAA serves over 132 million passengers through its seven UK airports, Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Aberdeen and Southampton.
BAA invests over £2 million daily in the UK's airport infrastructure, to provide world class facilities, customer service and in public transport, to provide better more sustainable access between its airports, notably the £500 million Heathrow Express.
BAA has 13 international airport contracts with either a share-holding and management or retail management role.
www.baa.com
