BT Wholesale has embarked on a five-year deal with O2 to consolidate the mobile company's mobile and fixed networks.
The multi-million pound managed service agreement will see the UK's biggest player in the fixed line market use its 21st Century Network (21CN) platform in an attempt to make it more reliable and ready for growth.
O2 has become famous for its outages after it took on the exclusive iPhone deal in the UK from Apple, with even its chief executive admitting to the pressure the sought after device put on the company's network.
A new converged network would see better quality connectivity as well as a reduction in capital expenditure for O2.
Nigel Purdy, head of networks for Telefnica O2 UK, said in a statement: "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."
O2 had already been working with BT on its fixed line offerings of landlines and broadband to business customers.
Brian Fitzpatrick, managing director of BT Wholesale Markets, said in a statement: "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."
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