Marconi signs £15m contract with Network Rail

Marconi has inked a five-year deal with Network Rail which could be worth as much as £15m.

Under the contract, the telecoms equipment company will provide equipment and services to improve the south eastern portion of the railway's communications networks and systems. In particular the equipment will support signalling and driver communications.

Marconi and Network Rail believe they will reduce costs by improving collaboration and by developing a benchmark system for work rates and payment incentives. The two companies will design and test the new systems together.

Marconi also said it believes the contract "provides us with a programme of renewals work that will allow us to plan and forecast our projects with increased efficiency".

Last month the telecoms company said it would cut 800 jobs after losing out on being named a supplier for BT's 21CN project.