BT selects Vodafone over mmO2

19 May 2004

BT Group has selected Vodafone to replace its former subsidiary mmO2 in supplying mobile services as part of BT’s fixed-wireless convergence offering for its 115,000 corporate customers. BT’s goal is for the five year contract to generate annual revenues in excess of GBP1 billion (USD1.77 billion) when it begins in November. The loss of the deal is a big blow to mmO2, with BT’s clients generating around 6% of its revenues. Additionally, the cellco is still reeling from the loss of another contract to supply 55,000 of the incumbent’s consumer clients with mobile services.