14 March 2002
The Ministry of Defence has saved 20 per cent on a major multi-satellite system through the department's largest private finance initiative (PFI) deal yet.
The Defence Procurement Agency (DPA) said the PFI deal cut the overall cost of Skynet 5 by about £500 million.
Skynet 5 will use at least two military satellites to deliver information between the UK's Defence Fixed Network, which handles telecommunications, and military users in the field.
The contract went to Paradigm, a consortium headed by BAE Systems and the European Aeronautic Defence and Space Company. It will also maintain the existing Skynet series.
The system will be in development from 2005 ahead of its 10-year implementation in 2008.