Friday, February 5, 2010

BT and O2 agree network consolidation deal

Bundle provider BT and its former cellular arm O2, which is now a part of Telefonica, have agreed upon a deal by which the BT will help to improve the network capabilities of rival broadband company O2.

The consolidation is looked upon positively by both the companies considering the rising levels of data traffic. Also, it is hoped that such an approach will allow O2 to improve the quality of next generation communications services that are available to its customers.

BT already provides core network management support for O2 on the mobile side, as well as a managed network service for the cellco's fixed and broadband services for businesses. The multimillion pound managed services deal is one of a series of wins for BT Wholesale. BT says it will enable O2 to handle the data explosion far more flexibly, and support a wide range of highly targeted next generation applications.

The interesting part is that the O2 has planned to sell fixed line phone services from next month and thus it indicates the changing patterns of the telecom market.

Overall it’s good news from the consumer’s point of view as they will also be benefited with this move because it will allow the company to offer its consumers with new bundles combining phone packages with broadband!

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