BT could team up with O2 for 4G service

As we reported back in February, BT was one of the winners in the 4G spectrum auction, despite not currently running its own mobile service.

According to the Financial Times, the phone giant is now on the lookout for a mobile partner to work with to make the most of its £200 million investment in 4G, kickstarting a tender process to find that partner.

The report claims O2, EE and Vodafone will look to get a piece of the action, but BT's favoured partner is the company it knows very well. O2 was part of BT's core business before being broken up, before being sold to Telefonica in 2005. It would also be a deal that would help O2, which didn't acquire any of the higher frequency 2.6GHz spectrum during the recent auction.

BT's own intention is boost its home broadband experience by giving customers access to 4G connectivity and voice services when away from home or hotspots.

It said: 'We can confirm we're looking for a fresh partnership with a mobile operator. We won some excellent 4G spectrum just recently so it makes sense for us to explore the new opportunities that 4G presents. We have a strong position in the WiFi market and we are looking to build on that.

'[BT is] rolling out fibre at breakneck speed and it's obvious that customers want decent speeds when they're out and about as well as at home.'

Sources: FT and TechRadar

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