Feeds

Marconi savaged after failure to win BT 21CN deal

Share price falls 40 per cent

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

Shares in telecoms equipment outfit Marconi plummeted more than 40 per cent this morning after it confirmed it had not secured a slice of a major £10bn contract from BT.

In a statement to the Stock Exchange Marconi announced it "has not been selected as preferred supplier for BT's next-generation 21st Century Network (21CN) project".

"This is a disappointing outcome from a very competitive tender process," said Marconi chief exec Mike Parton. "Our products performed extremely well technically, but we have been unable to meet BT's commercial requirements."

The failure to win a slice of the action sent shockwaves through the City. By El Reg's midmorning coffee break, shares in Marconi were down 207.5p (43 per cent) at 274.5p.

Putting a brave face on things Marconi added that it would continue to supply equipment and services to BT under existing contracts it has with the UK's dominant fixed line telco.

Earlier today BT named eight companies - whittled down from more than 300 across the globe - as its preferred suppliers for its 21CN project. The telco is investing £10bn over the next five years in the new network designed to deliver whizzy high-speed communications services.

The eight companies are Fujitsu, Huawei, Alcatel, Cisco, Siemens, Lucent, Ciena and Ericsson.

Said BT WHolesale boss Paul Reynolds: "21CN is a key infrastructure that will fuel the UK economy and provide a flexible way for consumers to use new services. The selection of the preferred suppliers is an incredibly important building block towards that vision. 21CN will also radically reduce BT's cost base, with identified savings of around one billion pounds a year."

Last year BT announced plans to migrate its national phone network to an Internet Protocol (IP) platform. The move will take five years to complete and should produce savings of £1bn a year for the UK's dominant fixed line telco.

The new multi-service IP-based network will carry both voice and data services and replace the UK's public switched telephone network (PSTN). 21CN will involve installing IP kit, called Multi Service Access Nodes (MSANs), in exchanges which are capable of carrying both voice and data traffic. The mass migration of customers onto the new network is set to begin in 2006 with the majority shunted across by 2008.®

Shares in BT were up 1p (0.5 per cent) at 198p at the time of writing. ®

Related stories

BT's 21CN is 'exciting, radical and now'
BT to trial fibre-to-the-home
BT to save £1bn a year with IP network

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.