Telefónica UK, which operates under the O2 brand in the UK, today announced major success in its bid to secure a place on a series of Lots for the Government Procurement Services’ Public Services Network (PSN) Services framework agreement. The PSN establishes one logical network and marketplace for the procurement and delivery of public sector communication services across the UK. Telefónica UK secured its place on seven Lots, spanning CCTV and Physical Security Monitoring, Conferencing, Call Contact Centre, Mobile Voice and Data, LAN, Gateway and the Unified Services lot, which allows unified solutions across ICT.

Telefónica UK believe the PSN provides a number of significant opportunities to contribute to a radical change in the public sector environment both at a central and local government level. O2 currently has less than 2% of the addressable market across Local and Central Government outside core mobile services. As a result, the company believes it can be a strong challenger to the traditional ICT players and genuinely look to achieve significant savings to all parts of the public sector particularly through its Joined Up Business strategy and propositions.

To take advantage of the opportunity created by PSN, O2 also announced today the creation of a specific public sector business with Billy D’Arcy, its new managing director. As part of the Enterprise division the new public sector business will have specialist expert public sector resources available in all areas and has been designed to ensure an increased senior engagement with policy makers and all areas of central and local government.

Already pioneering a new way of working with local government, The O2 Future Fund is a new initiative to help forward-thinking councils get to grips with new methods of engaging their staff, citizens and communities. The Future Fund will support ICT teams within local authorities, enabling them to bring to life projects where they believe technology innovation could drive positive change in their communities. In addition, a focus on new technologies such as cloud-based services, flexible working, the provision of applications and managed services means that O2 believe that public sector ICT now has the opportunity to leap frog the private sector in terms of innovation and best-in-class thinking.

Ben Dowd, Business Director at Telefónica UK, commented “For too long, ICT in the public sector has been seen as the necessary workhorse to ensure that systems and services have been run as efficiently as possible against strict budget constraints. The PSN provides an opportunity to introduce ideas and technologies that are able to have a transforming effect not only on these kinds of operations but in reality how government as a whole engages with its stakeholders and communities. As part of the seven lots, we hope to bring different ideas to an established way of doing things and in doing so help to contribute to areas such as cost efficiency, productivity and even the sustainable agenda.”

The announcement follows a competitive bidding process and demonstrates Telefónica UK’s commitment to the delivery of public sector communications services both in the communications and ICT markets – sectors in which Telefónica UK has outlined ambitions for substantial growth.

Dowd continued: “It’s really pleasing that, at the end of a rigorous bidding process, we’re moving forward with such a successful outcome. It signifies an important landmark in the role that Telefónica UK can play as traditionally this is an area of the market we have under indexed in. So for us as a company, we can very much enter this space as the challenger brand, both in terms of the thinking and the services we can supply but how we approach each of the seven lots.”

The PSN initiative, in line with the Government’s national ICT Strategy, is set to transform the provision of communications services for public sector organisations up and down the country. The central framework gives public sector departments access to a unique network platform, which combines the best in UK technology providers to maximise efficiencies and deliver better value for money when it comes to investment in technology services.

For more information on Telefónica UK and working with local government, please visit

Notes to Editors:

About Public Services Network

The Public Services Network (PSN) is the foundation for the Government ICT Strategy. PSN will substantially reduce the cost of communication services across UK Government and enable new, joined-up and shared public services for the benefit of citizens. PSN is creating one logical network, based on industry standards, and a more open and competitive ICT marketplace at the heart of UK Public Sector.

About Government Procurement Service

Government Procurement Service, an executive agency of the Cabinet Office, is the delivery arm of Government Procurement. Its overall priority is to provide procurement savings for central government, health and organisations across the UK public sector.

Its main focus is to deliver these savings through expert sourcing, category and centralised data management. By centralising, standardising and aggregating spend on common goods and services we deliver significant, sustainable cost reductions to Government.

Government Procurement Service provides value for money, commercial procurement solutions which are fully EU compliant, covering energy, office solutions, communications services, professional services, travel, fleet, IT commodities (including telecommunications and networks), property & facilities management and ecommerce.”

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O2 Press Office

About O2 in the UK
O2 is the commercial brand of Telefónica UK Limited and is a leading communications company with over 23 million customers – read more about O2 at O2 runs 2G and 3G networks and was the first to trial 4G/LTE, reaching speeds of over 100Mpbs, as well as owning half of Tesco Mobile. It also operates O2 Wifi, O2 Health, O2 Unify, O2 Media and has recently launched the O2 Wallet. O2 employs over 11,000 people in the UK, has 450 retail stores and sponsors The O2, O2 Academy venues and the England rugby team. Telefónica UK Limited is part of Telefónica Europe plc which uses O2 as its commercial brand in the UK, Ireland, Slovakia, Germany and the Czech Republic and is a business division of Telefónica SA.

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