BT Wholesale to consolidate networks for O2

O2 hopes the BT deal will help it meet ever rising demand for mobile data

BT has announced a new multi-million pound managed service agreement with O2 to consolidate the mobile operator's fixed and mobile networks in the UK.

The contract will run for five years and use BT's 21st Century Network to bring the two networks together for a more cost-effective service, according to the firms.

O2 said that the consolidation will enable it to provide a high capacity and resilient network for next-generation communications, especially as demand for mobile data continues to rise.

Nigel Purdy, head of networks at Telefónica O2 UK, claimed that the deal offers the most common sense approach for the company, and will future-proof its business to ensure that it can continue to provide the best possible service for customers.

Brian Fitzpatrick, managing director of BT Wholesale Markets, added that the agreement is another example of the industry's shift from commodity products to value-added managed services.

"The trend to outsource network requirements continues as operators look to stabilise their operational and investment costs, enabling them to concentrate on their customers," he said.

BT and O2 already have a strong partnership, under which BT Wholesale provides services including core network management support for O2 customers, and a network service to allow the mobile operator to provide businesses with broadband services.

BT Wholesale operates a large number of managed network services, and reported recently that over 40 per cent of its annual revenue is generated from these contracts.