BT has agreed an extended deal with the Ministry of Defence (MoD) to manage the body's telecommunications services until 2015.

The telecoms giant has revealed that the deal is expected to be worth £640 million in revenue between 2012 and 2015, with the work set to include a major network upgrade.

Increased bandwidth and a reduction in latency will raise current levels of application and security performance, BT explained.

Chief executive of BT Global Services Jeff Kelly said the agreement between the two organisations had already helped the MoD to become more efficient, which he claimed demonstrates "the benefits of public-private partnerships".

"This transformation programme will offer the MoD better capabilities at the same time as offering financial savings," Mr Kelly commented.

Last summer, broadband, digital TV and home phone provider BT announced that it had been awarded a contract from the ministry to support communications across 197 military bases.

The deal, which saw BT manage data and voice networks, was worth more than £99 million.

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