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UPDATE Openreach Conduct “forensic investigation” of £1.5bn Carillion Deal

Tuesday, July 18th, 2017 (12:22 pm) - Score 1,410

Openreach (BT) is allegedly conducting a “forensic investigation” of their £1.5bn three-year extension deal with construction firm Carillion (here), which has recently been hit by various financial troubles (e.g. net debt and pensions) that have sent the company’s shares into a nosedive.

The deal is actually part of a Carillion Telent (60:40) Joint Venture and in theory, if the worst were to happen, then Telent could take on responsibility for the entire contract with Openreach. All of this would affect the operator’s on-going UK roll-out of new and future “fibre broadband” services, as well as maintenance and repair of related networks etc.

The chances of Carillion hitting a wall that it can’t climb over have recently reduced somewhat after the Government awarded them two big contracts for HS2 and the Ministry of Defence (MoD). However City A.M. reports that Openreach has wisely decided to take a closer look at their contract in order to ensure that they’re covered.

UPDATE 20th July 2017

Openreach has now decided to issue a comment on this story.

A Spokesperson for Openreach told ISPreview.co.uk:

“We note the recent reports about our work with Carillion Telent. Over the last eight years, Openreach and Carillion Telent have built a strong and productive partnership that has seen us transform Britain’s digital landscape.

Their support in helping us to maintain, extend and upgrade our national network has enabled Openreach to provide a platform for the largest digital economy in the G20.

We have every confidence that our partnership will continue to deliver strong outcomes for our customers and the UK.”

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By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
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