Network operator Orange has won a three year contract to supply mobile telephony services to British public sector organisations. Government bodies such as the National Health Service had previously been restricted to purchasing such services from Vodafone.

According to Orange, the government has over 240,000 mobile telephones in use. Orange has agreed pricing and contract terms in advance with the Office of Government Commerce, eliminating the need for individual tenders.

Richard Hanscott, vice-president, Business Solutions, Orange UK, said: “This contract is a significant one for Orange, proving we have the products and services to win major contracts in the business space. This healthy competition and more efficient, cost effective process also signals a major opportunity for the government to embrace wirefree working.”

Insight

This may not have a huge impact on earnings immediately, but the potential addition of about a quarter of a million government subscribers will certainly help improve the bottom line over the next three years. The real potential is in what lies beyond. The British Government is commited to digitising its infrastructure over the long-term and Orange will be well placed to provide the wireless services that will inevitably form part of the e-government initiatives.