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BT scores managed services deal for O2

BT to take over O2's core network

UK carrier BT must be feeling like its gone back to 2001, as it announces a five year, multi-million pound managed services agreement to run O2’s mobile and fixed core networks.

BT Wholesale will consolidate O2’s mobile and fixed core networks onto its next generation 21st Century Network (21CN) platform, allowing the mobile operator to deliver a range of next generation services and better cope with the explosion in mobile data usage.

BT already provides core network management support for O2 mobile as well as a managed network service enabling O2 to provide fixed and broadband services to the UK enterprise market.

From March, O2 will also start selling fixed line phone services to its fixed line broadband customers, marking the first time O2 has gone head to head with BT since it was spun out of the incumbent carrier in 2001.

Commenting on the managed services deal, Nigel Purdy, head of networks at Telefónica O2 UK said: “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. BT Wholesale continues to impress O2 with its ability to deliver highly complex solutions.”

In related news, high street retailer the Carphone Warehouse is understood to be looking at launching mobile phone and fixed line TV services and is in the market for a wholesale provider.

Carphone is currently looking at a demerger of its fixed line voice and broadband business –TalkTalk- from the rest of its operations .

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