UK fixed line operator BT has begun searching for a mobile partner after acquiring its own 4G spectrum earlier this year.
EE, Vodafone, 3 and O2 are all thought to be participating in the tender, with the latter seen as having the most to gain because…
UK fixed line operator BT has begun searching for a mobile partner after acquiring its own 4G spectrum earlier this year.
EE, Vodafone, 3 and O2 are all thought to be participating in the tender, with the latter seen as having the most to gain because it lacks the high-end 2.6GHz frequencies BT owns.
Neither mobile operator was able to comment on the speculation.
Analysts have previously warned this shortfall in airwaves could see the Telefonica-owned group suffer in the longer term, because it is particularly suited for covering high traffic areas.
The two companies also have a shared history, with BT once owning O2’s assets before selling them seven years ago to Telefonica.
A BT spokesman 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.
“We’re 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.”
Before BT acquired 4G frequencies from February’s spectrum auction, it had held an agreement with Vodafone worth £10m a year, which included the provision of mobile services to its staff and enterprise customers, as well as scope for a possible MVNO, according to sources close to the situation.
But it is understood that Vodafone’s recent acquisition of BT rival CWW nullified the deal, leading the fixed line operator to put the consumer part of its mobile business out to tender.
BT and Vodafone declined to comment.
With a mobile partner BT could launch an MVNO offering similar to Virgin Mobile, but a move towards a “full screen play” to bolster its TV services is seen as more likely. That would allow the group to compete with pay-TV giant BSkyB’s Sky Go service, which allows customers to continue watching TV on remote devices after leaving their home.
