BT Wholesale Bags O2 Contract To Consolidate Networks

UK telecommunications giant BT has entered into a partnership with O2 to consolidate the mobile operator’s fixed line and mobile networks.

The multi-million pound contract would see the UK’s largest fixed line network outfit using its cutting-edge 21st Century Network (21CN) platform to consolidate O2’s network infrastructure to help it offer seamless services.

The agreement comes in the wake of a recent admission by O2 on its frequent service outages in London region ever since it introduced the data-hungry iPhone smartphone on its networks.

Incidentally, O2’s chief executive has already admitted to the mounting pressure due to recurrent network congestion after the blockbuster device was launched on its networks, claiming that the data-traffic on the company’s networks has surged almost 18-fold owing to the launch of smartphones.

Describing the significance of such a move, Nigel Purdy, chief of networks at Telefonica O2 UK, said in a statement: “As we move to an all-IP world and as data traffic volumes increase, the consolidation of our fixed and mobile core networks is a common sense approach that will help future-proof our business and provide the best possible service for our customers.”

Furthermore, BT Wholesale stated that the agreement would help O2 offer a wide array of network communication services without pooling hefty capital for its network upgrade.

Our Comments

Ironically, O2 started life as BT Cellnet back in the old days. It was later sold to Telefonica and is now quietly coming back to the mother ship. BT desperately needs to beef up its mobile sector and it cannot be overruled that one day, BT will become a MVNO again.

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