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O2 and BT getting Joined Up

17 Sep 2009 | 17.24 Europe/London
O2 has announced it's going into partnership with BT to set up its first fixed-line service for businesses. Meanwhile, BT itself has finally been shown to the green light to put together its own telecoms bundles that include a fixed-line component.

O2's new offering is called "Joined Up," which brings together mobile, fixed-line, data, broadband and consultancy services. It's been made possible thanks to a five-year deal with BT Wholesale is set to launch next month. “We wouldn’t be entering this space if we didn’t feel there was a significant opportunity for us, which we absolutely do," said Ben Dowd, business sales director at O2. "With the combined strength of O2 and Telefonica it’s a big opportunity.”

While O2 already has around half a million fixed-line broadband customers, to date its broadband packages have been primarily targeted at home rather than business users. In fact, the Telfonica-owned firm has just won the "Best Rated Home Broadband" gong at the Top 10 Broadband Awards. However, that's not to say that they were deemed to be the fastest or best value for money ISP serving UK households - which were Virgin Media and the BT-owned Plusnet respectively (a full list of winners is a the foot of the page.)

O2's new fixed-line business bundle comes as the communications regulator removes the restrictions that have stopped BT from putting together its own versions for residential users. Ofcom made the announcement along with that of its plans to deregulate the retail telecoms market; the official verdict is that rules can be lifted on BT because it no longer "holds significant power" in most of the relevant UK markets. That's in part to the LLU work that's been going on since BT and Openreach were formally separated.

Ofcom says that other internet service providers, such as the likes of Virgin Media, BSkyB and TalkTalk, "provide effective competition to BT." Twelve million households and businesses now rely on an ISP other than BT, which has of course welcomed the decision. "It means BT will be competing on a more level playing field than previously," says Gavin Patterson, the chief executive of BT's retail division. 

BT will now be able to offer home users fixed-line services bundled into broadband and TV packages, with Mr. Patterson promising consumers "exciting new offers in the near future." It's worth noting that, in comparision with the number of fixed-line customers O2 currently has, BT already has around twelve million. And Ofcom's opinion on BT's market dominance in terms of ISDN2 hasn't changed; current measures there remain in place.  

Here's the full list of Top 10 Broadband Award winners:
Best Broadband & TV  Sky

Best Broadband & Laptop  Orange

Best Wireless Broadband  BT

Fastest Home Broadband  Virgin Media

Fastest Mobile Broadband  Vodafone

Best Value Home Broadband  Plusnet

Best Value Mobile Broadband  3

Best Rated Home Broadband  O2

Best Rated Mobile Broadband  Vodafone

Broadband Innovation  Virgin Media

Further details at [The Independent] [The Times] & [ZDNet]