The government has signed a two-year framework contract with Virgin Media Business, Global Crossing and Siemens Enterprise Communications for the provision of telecoms services to the public sector.

The contract could be worth up to £500 million, according to the Guardian.

It replaces a previous £105 million contract extension for Managed Telecommunication Services (MTS) that OGCbuying solutions (which is now known as Government Procurement Service) signed with managed telecoms services provider Global Crossing four years ago, which ends at the end of 2011. The original deal was signed in 1996, with Global Crossing providing its service to 90 public sector organisations.

The new Managed Telecommunications Convergence Framework contract will enable all UK public sector bodies to purchase managed telephony, conferencing, data networking solutions and Public Sector Network (PSN) services under the contract.

The three companies - with Siemens working in partnership with BT - will provide voice, video, unified communications and network services. Design, consultancy and other professional and supporting services will also be on offer.