Racal Electronics Plc has announced major plans for its Racal Scicon company in the wake of its Government Data Network coup, including a name change, a major investment programme, and an overseas exports drive. Renamed Racal Data Networks Ltd, the company will be given an increasingly high profile within the Racal Group. Some of the funds raised by the future flotation of the Vodafone cellular business are to be siphoned into the infant company which is also expected to become a major revenue earner for Racal. Data Networks is looking for UKP600m revenues from UK government departments renting capacity on the Data Network over the next 10 years. In addition, Barry Stuttard, managing director of Racal Data Networks said that he expects the company to trawl another UKP500m from overseas business with the majority coming from Europe. The contract is a stepping stone for us to gain credibility and stature. There are potentially opportunities for contracts with other governments, inside and outside Europe he said. Stuttard said that a non-European government has already expressed interest in Racal’s managed data network package. Racal Data Networks will seek to nurture the anticipated demand for managed data networks from European government and commercial bodies by setting up subsidiaries across the continent, adding to its three existing outposts in Germany, Italy and the Netherlands. In the UK, four government departments, the Department of Health & Social Security, Customs and Excise, Home Office and Inland Revenue have signed access agreements to the Government Data Network with others expected to follow suit. The X25 network is scheduled to go live in early 1989 and a pilot is currently handling test traffic between five switching centres in the south of England, Midlands, North West and Scotland. A network management centre has been set up Basingstoke, Hampshire. Telematics UK, the Basingstoke-based subsidiary of communications CPU manufacturer Telematics International Inc, Fort Lauderdale, Florida, will supply the X25 switches.
