Capita wins internet network contract with Transport for London

Capita, the outsourcing group, has won an £80m contract to provide and manage Transport for London's internal internet network across its 1,000-plus stations, offices and other sites for the next five years.

Capita on Thursday began a transition period ahead of its August 2018 delivery date for TfL's wide area network, local area network and WiFi networks, with the initial period of five years and an option to extend for up to five further years.

The total IFRS 15 transaction price of the contract is £135m, Capita said, with the new accounting standards taking into account the initial £80m scope and five-year term, plus a subsequent 'pre-priced extension'.

TfL, by consolidating its multiple outsourced contracts into a single network service contract, expects outsourcing to Capita will deliver savings of at least £33m.

Capita has been contracted to take on existing services, undertake a large-scale technical "refresh", simplify the complex network infrastructure and operate, monitor and maintain the new network infrastructure.

As part of this, the equipment used to provide free public WiFi across the London Underground network will be reviewed and refreshed.

Jonathan Lewis, Capita's chief executive, said: “Our extensive networking solutions expertise and track record of undertaking large-scale critical network implementations for clients means we are well equipped to support the consolidation of TfL’s data network. We look forward to fully supporting TfL as they consolidate, transform and upscale their network services, essential to supporting mission critical data services across the London transport network.”

Shashi Verma, TfL's chief technology officer, highlighted that the contract will "allow TfL to deliver improvements which will make it work more efficiently for our needs" and deliver savings that can be reinvested in improving transport services.