back to article BT scoops up Wales PSN contracts, elbows out Logicalis

BT has pipped Logicalis to be the preferred supplier to provide the Welsh public sector with broadband and other IP services in a contract valued at up to £420m over its lifetime. This is a blow for the Welsh Slough-based Logicalis, which from 2007 built a public sector network (PSN) for Wales - the first in Europe - to …

  1. graeme leggett Silver badge

    geographic entity

    "Welsh Slough-based Logicalis"

    headquartered in Slough for one business reason, but employing personnel within the principality for others?

    any reason it couldn't go the whole hog and be a wholly Welsh company. If it had been a Scottish York-based company I'd have made up some jibe about a tartan fig-leaf, is there a Welsh equivalent?

    1. Anonymous Coward
      Anonymous Coward

      Re: geographic entity

      "any reason it couldn't go the whole hog and be a wholly Welsh company"

      It certainly could be incorporated in the Parochiality, but what are the chances of finding all the relevant skills and proper Cymric funding on the wrong side of Offa's Dyke? How would you be sure that no foreign capital was employed, no-non Welsh manufactured hardware or IP procured? And presumably you'd have an ethnicity test to make sure the employees were all accredited as officially Welsh?

      And where's the advantage in doing that other than rubbing the belly of Welsh nationalism?

      1. Justa

        Re: geographic entity

        No need for an ethnicity test. If you're not Welsh, we know, believe me, we know...

      2. graeme leggett Silver badge

        Re: geographic entity

        I was figuring that although the money was being spent on for the benefit of public services in Wales, profits/senior management salaries were being dragged Londonwards and topping up the incomes of , say, estate agents in the M25 area

    2. Isendel Steel
      Coat

      Re: geographic entity

      Leek-leaf ?

  2. Paul McCourt

    Hmm, is that STG£130,000 per endpoint?

    My primary school maths can't be right can it?

  3. Lester

    Looks like BT finally got fed with losing these and decided to 'buy' one..

    (although they get paid whoever wins really)

    1. alpine

      "(although they get paid whoever wins really)"

      Precisely.

      I don't know why the headline on the front page reads 'one time' telco monopoly.

    2. Anonymous Coward
      Anonymous Coward

      That's kind of true and kind of not.

      The bit of BT that provides raw networking wins regardless, and remains a near monopoly despite the gigantic (and usually calamitous) investments of various would-be competitors.

      The problem is that that bit is regulated to the hilt, and so it's steadily profitable but not excitingly so. Because BT wins in a modest way regardless of who wins these bids their share price isn't affected and executives don't get their all-important bonuses.

      The bit of BT that provides managed services on top only wins if BT win directly, and this is the bit that does impact all of the things above. Margins are made, bonuses secured and calves slaughtered in celebration.

      The only corollary to this where PSN deals are concerned is that in my experience the winners often fare as badly as the losers. The framework contracts are bid based on a demand schedule so improbable that it would require every sheep to have their own ethernet circuit. Excited bidders then cut margins to the bone based on that theoretical demand that never materialises and large overheads are left uncovered at the end of the contract.

      Margins are lost, bonuses withdrawn and calves have to be re-animated for sale at market to cover the mortgage.

  4. John Smith 19 Gold badge
    WTF?

    So *despite* being the incumbant they don't have a home team advantage?

    I smell the work of BT's "relationship management team" at work vigorously lubricating the sales channel.

    If this is correct then at least Logicalis got a great entry for their corporate CV. :( .

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