O2 Signs UK Backhaul Contract with British Telecom

The UK's dominant landline operator, BT has announced a new managed network solutions agreement with Telefonica O2 that will see BT Wholesale provide and manage high speed connectivity between the majority of O2’s base stations and its core national network in the UK.

The contract is similar to one announced between BT and Vodafone last month. The O2 contract is for an unspecified term - although the Vodafone deal is for an initial five years.

BT says that the agreement takes advantage of its new 21st Century Network-enabled Ethernet service. The new, next generation, carrier class service provides communications providers with scalable bandwidth to meet increased demand flexibly, with costs matching actual traffic and revenue increases. This agreement allows O2 to avoid capital investment risk, while benefiting from the economies of scale and national reach that BT Wholesale offers.

Nigel Purdy, Head of Networks Engineering, O2 UK said: “In working in partnership with BT Wholesale, we have a solution that takes care of our growing access and bandwidth needs while enabling us to realise greater cost efficiencies. It allows O2 customers to experience a better mobile broadband experience and significantly reduces our access transmission whole life cycle costs.”

Posted to the site on 13th May 2008