C&W in £82m deal with Foreign Office

The company will provide network and infrastructure for the FCO, which runs a global network of 200 embassies, high commissions and consulates in more than 150 different countries.

Cable & Wireless said the five-and-a-half-year contract would save the taxpayer 90m and reduce flight emissions and travel costs to the department by increasing the use of reliable video conferencing. It expects to win other government contracts after signing a framework agreement.

Jim Marsh, chief executive, said: "With our extensive, resilient and secure network, we're the natural partner for the government. We're delighted this groundbreaking framework is now in place and that we have our first contract in the FCO.

"We will assist the Government's efficiency drive."

Cable & Wireless, which employs around 250 network engineers and IT specialists in Leeds, is headquartered in London.

Shares closed last night at 74p, a rise of 1.9p.