UK telco BT dumnps Codafone, signs multi-year deal with mobile network EE

UK telco, BT signed a ''multi-year'' deal with mobile network EE that would see the latter provide a mobile virtual network, paving the way for BT to launch a new consumer mobile network.

With the move, EE now replaces Vodafone as BT's virtual mobile network provider.

The company already offered a BT Mobile service to businesses and public sector bodies. The two companies had last year announced an intention for EE to provide MVNO (mobile virtual network operator) to BT's customers and employees based in the UK.

The move was widely taken as signifying BT's intention to re-enter the consumer mobile market, allowing it to offer quad-play packages of mobile, landline, broadband and TV services.

BT said in a statement that the deal meant customers would be able to access 2G, 3G and 4G services.

While speculation had been rife about BT's expected return to consumer services, officially the company said it had ''a strong wi-fi presence that it plans to build on.''

Under the deal, business customers who bought mobile services from BT would now effectively be transfered from the Vodafone network to EE. According to BT it would "carefully manage the change from its current UK MVNO provider to EE to ensure a seamless transition for customers".

The first announcement from BT of its intention to partner with EE came in October, but the deal, which would give BT mobile customers access to EE's 2G, 3G and 4G services was announced today.

EE currently boasts the most extensive 4G network spread across the country. It had made good use of its head start over rivals to deliver 4G services over its existing spectrum, while the others had to wait for the conclusion of Ofcom's 4G auction.

BT had also been awarded a part of the spectrum in that 4G auction, but had not yet revealed what it planned to do with it.

According to a spokesperson for BT who spoke to PC Pro, the company would announce its own 4G plans later in the year, which would be "complementary" to EE's 4G services.

The two companies had earlier worked together on a trial in Cornwall which saw 4G used to provide superfast broadband to remote areas that were not covered by BT's fibre rollout.

According to commentators it was likely that BT would use its own 4G spectrum to provide such "filler" services, rather than relying on a partner network.