BT and O2 are set to announce a strategic partnership on Wednesday, which the firms say will benefit both enterprise and mid-market organisations.
While the exact details remain sketchy, a source close to the companies said the partnership would produce a new product as well as an outsourcing deal.
The agreement would allow BT and 02 to offer a good match of fixed line and mobile services, the source said.
Such remarks indicate the deal is likely to involve 02 supplying the network infrastructure for BT's Mobile Virtual Network Operator (MVNO) services providing converged communications to the corporate market.
MVNOs provide mobile phone services but do not have their own licensed frequency allocation of radio spectrum, or all of the infrastructure required to provide mobile telephone services.
In 2004, three years after BT ditched its 02 division to cut costs, BT signed a MVNO deal with rival phone company Vodafone.
BT said at the time the deal was the start of things to come: "The announcement marks the start of building BT's vision for converged services in the business and consumer markets, with plans to introduce a range of future services across fixed and wireless, voice and data networks."
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