Airwave £115m deal down the Tube

O2 Airwave has won a £115m contract to supply network coverage throughout London Underground.

Under the deal, O2 will link the network used by the emergency services to the Tube's own Connect digital radio system, to allow workers from the police, ambulance and fire services to have radio coverage when working in the Tube's tunnels and stations.

The Connect service is already live on a number of London Underground lines and should be deployed across the entire network during this year.

All Tube stations are scheduled to be equipped to link the Airwave and Connect systems in 2008, with the East London line getting linked up first, some time in April 2007.

O2 Airwave has also recently secured a £32m deal with the Welsh Ambulance Service and the company has already secured contacts with the three emergency services.

However, the service has been dogged by rumours it is to be sold. One of the potential buyers is thought to be Australian bank Macquarie.