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Business & education services

Skynet contract goes to Babcock over BT

In the Terminator movies, Skynet is the evil artificial intelligence force, which "removes human decisions from strategic defense...begins to learn at a geometric [and] becomes self-aware".

In the UK, it is the name that has been chosen for the Ministry of Defence's military satellite communications system, the communications platform used by the UK armed forces.

And in good news for Babcock International PLC (LSE:BAB), it has won a six-year, £400mln-plus contract to manage and operate the system, starting next month, beating off BT Group PLC (LSE:BT.A), Serco Group PLC (LSE:SRP) and Airbus.

Skynet services will encompass integrating ground terminals into the network, ensuring they are integrated and supported, with Babcock teaming up with other contractors SES, GovSat and Intelsat.

The FTSE 250 group's chief executive, David Lockwood, hailed the win, saying it is a "world leader in secure communications for the military" and will be supporting a "world-leading technological safeguard".

Defence procurement minister Alex Chalk said: "Space is increasingly important for maintaining battlefield advantage. The UK's next generation military satellite communications system will keep us at the forefront of this critical domain and the work under this contract will bolster our resilience for years to come."

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