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Lite Access expects no impact from Carillion collapse on BT Openreach work

Last autumn, the Toronto-listed firm won a contract with Carillion telent to support a fibre rollout in Wales
Lite Access expects no impact from Carillion collapse on  BT Openreach work
Lite Access describes itself as a world leader in microduct and fibre optic technologies.

Fibre optic specialist Lite Access Technologies Inc (CVE:LTE) says the collapse of UK construction and services giant Carillion PLC (LON:CLLN) should have no impact on its previously announced work with BT's Openreach in the UK.

As revealed in November, the Toronto-listed firm won a contract with Carillion telent to support the Openreach Superfast Cymru fibre rollout in Wales.

READ: Lite Access Technologies hails 'transformational' contract with Carillion telent for superfast fibre rollout in Wales

On Monday this week, Carillion confirmed its collapse and then went into compulsory liquidation, threatening thousands of jobs.

The firm held about 450 governmental contracts, spanning the education, justice, defence and transport ministries.

Telent put out a statement earlier this week, which Lite Access quoted from: "Following the news of the liquidation of Carillion, we [telent] confirm that the Carillion telent joint venture remains open for business and there will be continuity of delivery to its customers.

"There will be no adverse impact to any of telent's other business and customers ... Existing contracts will be honoured and continue to run as normal, including the two biggest contracts with Openreach and Gigaclear.

"All workers involved in the joint venture not currently employed by telent will transfer to telent, securing all jobs and delivery of the service. Subcontractors to the CtJV will continue to operate under their existing arrangements."

READ: Lite Access Technologies awarded large FTTP contract in UK

Mike Plotnikoff, chief executive at Lite Access, added: "...we expect that the developments at Carillion will have no material impact on our business and operational activities on behalf of BT's Openreach.

"Our teams continue to make excellent progress with the ramp up of our operational activities in the UK. Business development meetings to discuss significant fibre network roll out are currently taking place with UK telecoms operators and internet service providers."

Lite Access shares shed 6.57% to C$1.28 each.

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