Vodafone seals BT broadband deal

11 Sep 2006

Mobile operator Vodafone UK has struck a deal with fixed line incumbent BT for wholesale broadband internet access, as part of its plan to become a converged service provider. ‘This partnership enables Vodafone’s customers to benefit from bundled packages of mobile and broadband services nationwide, due to BT’s unique footprint in the UK,’ Vodafone said in a statement. The value of the deal was not disclosed. Vodafone hopes to launch branded broadband services before the end of the year. Earlier this year Vodafone announced it would be looking to expand its remit beyond pure play mobile services, with the aim of generating around 10% of its annual revenues over the next three to four years from other businesses, including converged fixed-mobile and internet services. It was linked with a takeover bid for ISP Tiscali UK earlier this year, but the rumours amounted to nothing.

Competition in the UK broadband market is intense, with retailer Carphone Warehouse and pay-TV broadcaster BSkyB recently announcing cut-price packages, whilst Vodafone’s mobile rivals Orange and O2 have made great strides in the internet access market via affiliate companies Wanadoo and Be respectively.

United Kingdom, BT Group (incl. Openreach), Vodafone UK