BT has revealed details of a new five year, multi-million pound managed services agreement that will see BT Wholesale consolidate O2's mobile and fixed core networks in the UK into one cost-effective network using BT's 21st Century Network (21CN) platform.

A consolidated approach will provide O2 with a platform to deliver a range of next generation communications services to meet the needs of its customers with the reliability and quality required, as well as enable the company to reduce its capital expenditure. With data services becoming increasingly prevalent in mobile networks, a high capacity and resilient core network is essential for delivering the high-level of service that today's customers demand as data volumes continue to rise.

BT Wholesale already provides a range of services to O2 including core network management support for O2's mobile customers as well as a managed network service that is enabling O2 to serve the UK business market with fixed and broadband services.

Nigel Purdy, Head of Networks, 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 is a trusted partner and we value its experience in managed services."

Brian Fitzpatrick, Managing Director, BT Wholesale Markets said: "Our industry is witnessing a significant shift from commodity products to value-added managed services and this latest agreement with O2 is yet another example of how BT Wholesale is at the forefront of this industry transformation.

"The trend to outsource network requirements to BT Wholesale continues as operators look to stabilise their operational and investment costs, enabling them to concentrate on their customers."