Network & Telecommunications Procurement Project (NTPP)

1. Background:

Transport for London's (TfL) data network and telecoms services underpin everything we do. Without them we cannot run any of our transport services or collect revenue. Since around 2017, we have been guided by an overarching strategy in relation to our data networks and telecoms services.

Based on this strategy, through modernisation and consolidation of infrastructure and consolidation of support contracts we have dramatically simplified our estate, improved reliability, increased levels of cyber security and materially reduced our costs. While our strategy recommends that we consolidate to the greatest extent possible, it also recognises that we operate in a number of very different environments and these may require different approaches to how services are delivered.

As such, the strategy has always envisaged the likely need for different delivery approaches (including how we contract services) for the delivery of our below-ground and above-ground data networks and telecoms services.

Therefore, based upon our strategy, with the exception of certain network services delivered as part of vertically integrated contracts (e.g. some of our signalling systems) we now have two key network and telecoms service categories delivered and supported by two main contracts - the Access Network and Wide Area Network (AN&W) Contract and the Connect Contract.

The Access Network and WAN Contract provides a range of services including; support for all head office buildings, connectivity to c. 6,000 operational locations (including traffic signals, CCTV cameras, bus stations, bus garages), London Underground (LU) Wi-Fi services, data centre routing and switching capability, firewalls and WAN connectivity to cloud and internet based services, as well as data network services to support revenue collection (including Road User Charging (RUC), Oyster and contactless payments).

The Connect Contract delivers two key service components. Firstly, the operationally critical 'radio services' used by LU. This includes TETRA radio services covering c. 270 stations and c. 400km of tracks, as well as c. 11,000 hand portables, 1,500+ train mobiles, 200+ dispatcher terminals and 200+ desk top radios. Secondly, the Connect Contract provides the provision of 'communication and connectivity services' for LU.

This includes data network connectivity between LU control centres, stations and station staff and other links for a range of railway applications and services, including TETRA radio and CCTV. This data network connectivity is currently provided by three data networks (MPLS, ATM and SDH) however these three networks are currently being replaced by a new, consolidated high capacity optical network which has been designed to maximise future utility.

2. Future Procurement:

Both the AN&W Contract and the Connect Contract expire towards the end of this decade. Therefore, we are currently in the process of planning and preparing for the future re-procurement of our main data network and telecoms services. Our initial analysis, supported by external assessment, is that re-procuring both of these contracts as part of a multi-lot procurement is most likely to offer optimised outcomes and a range of technical, operational, financial and commercial benefits.

Key benefits are anticipated to include; improved security, increased agility / ability to make changes, reduction in asset base / carbon reduction, improved availability and reliability, wider utility opportunities (e.g. for new signalling systems), more efficient and effective data network operations management, opportunities to better integrate data network and service management, a common view of system performance, economies of scale and aggregation to minimise delivery costs and maximise best value prices, and savings opportunities.

Therefore, we anticipate launching a multi-lot procurement in the second half of 2026. Our current expectation is the procurement will be based around three lots;

i. a TfL Connectivity Services lot: this will likely bring together the WAN elements of the Connect Contract and the LAN and Wi-Fi elements of the AN&W Contract for our LU locations (delivering end-to-end "below ground" network services);

ii. a LU Operational Radio lot: this will likely include the TETRA radio service elements of the Connect Contract; and

iii. a Commoditised Connectivity Services lot: this will likely include all remaining WAN, LAN and Wi-Fi elements of the AN&W Contract and Connect Contract, plus data centre services (delivering end-to-end "above ground" network services).