Today BT has entered a partnership with O2 to launch a high-capacity 4G network. The telecoms giant has signed a 10-year deal with its former subsidiary to provide a transmission and backhaul network for the mobile phone operator’s 4G plans.
O2, which failed to secure any of the high-end 2.6 GHz spectrum in January’s bidding war, now has the capacity it requires to support the anticipated increase in data demands when its 4G roll out begins.
The network is expected to be switched on this summer and the deal said to be worth around half a billion pounds, The Daily Telegraph reports.
“Basically this deal will mean BT giving O2 a big increase in the capacity – the amount of voice and data traffic that they can carry – between their base stations and the core network,” said an O2 spokesperson in a statement.
“So it’s not about the connection between your mobile/iPad and one of O2’s masts in the street – but it’s about where all that data and voice traffic goes from there.”
EE is currently the only UK service provider offering a 4G service, but competition in the sector is about to heat up, with rival networks just months away from launch.
Three has announced plans to undercut the Orange and T-Mobile merger by offering 4G connectivity at no extra cost.