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The collapse of construction firm Carillion will not adversely affect Broadband Delivery UK (BDUK) projects, the government has said.

The construction firm went into liquidation on Monday (January 15th), after experiencing major financial problems.

However, Carillion owns a 60 per cent stake in a joint venture with telecoms firm telent, known as Carillion telent (CT).

CT is a supplier in the BDUK programme - an initiative to deliver superfast broadband to at least 97 per cent of UK premises by 2020.

However, since the joint venture is a separate legal entity to the business that has been liquidated, planned rollouts look set to be largely unaffected.

A DCMS spokesperson said: "We have been advised by contractors that any impact on the BDUK rollout of superfast broadband is likely to be minimal."

Meanwhile, telent insisted that existing contracts will be honoured and continue to run as normal, including "the two biggest contracts with Openreach and Gigaclear".

An Openreach spokesperson added: "We have conducted a thorough legal and financial assessment of the JV, and we’re confident in its ongoing viability without Openreach incurring any extra cost or liability."

 

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