Press release

O2 today announced a new managed network solutions agreement with BT that will see BT Wholesale provide and manage high speed connectivity between the majority of O2's base stations and its core national network in the UK.

Under the terms of the five-year agreement, BT will design and deliver a cost-efficient and flexible solution that enables O2 to manage the predicted increases in network traffic caused by new bandwidth-intensive handsets, reducing the need to invest heavily in significant and advanced network upgrading. 

The agreement takes advantage of BT's new 21st Century Network-enabled Ethernet service. The new, next generation, carrier class service provides communications providers with scalable bandwidth to meet increased demand flexibly, with costs matching actual traffic and revenue increases. This agreement allows O2 to avoid capital investment risk, while benefiting from the economies of scale and national reach that BT Wholesale offers.

Nigel Purdy, Head of Networks Engineering, O2 UK said: "In working in partnership with BT Wholesale, we have a solution that takes care of our growing access and bandwidth needs while enabling us to realise greater cost efficiencies. It allows O2 customers to experience a better mobile broadband experience and significantly reduces our access transmission whole life cycle costs."

Sally Davis, chief executive of BT Wholesale, said: "Communications providers want to secure revenue growth from new services without risking upfront capital and operational investments.

"Consumers are increasingly using mobile devices to access and send data such as photos, video, gaming and high speed web browsing.  These bandwidth-hungry applications put considerable strain on backhaul networks. BT is able to design, tailor and manage the access network and cater to the demands that O2's customers are increasingly putting on the network."

Contacts
O2 UK Press Office: 01753 565656  http://mediacentre.o2.co.uk

BT Group Newsroom: 020 7356 5369 http://www.btplc.com/News

About O2
O2 is a leading provider of mobile and broadband services to consumers and businesses in the UK.  These services include voice, text, media messaging, games, music and video, as well as always on data connections via GPRS, 3G and WLAN. Every month, O2's 18.4 million customers send well over a billion text messages.  O2 UK is part of Telefónica O2 Europe which comprises mobile network operators in the UK, Ireland and Slovakia along with integrated fixed / mobile businesses in Germany and the Czech Republic.  Telefónica O2 Europe also owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively as well as having 100% ownership of Be, a leading UK fixed broadband provider

O2 was ranked as 6th best place to work in the Best Companies to Work for 2008 List and has been awarded a three-star accreditation denoting an 'extraordinary' company.

(For b-roll footage of O2, please visit www.thenewshub.co.uk)
For further press information about O2 go to http://mediacentre.o2.co.uk

About BT
BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of local, national and international telecommunications services to our customers for use at home, at work and on the move; higher-value broadband and internet products and services and converged fixed/mobile products and services.  BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2007, BT Group plc's revenue was £20,223 million with profit before taxation of £2,484 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.  BT Group plc is listed on stock exchanges in London and New York. 

For more information, visit www.bt.com/aboutbt

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