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Orange backtracks on unbundling as BT asked to manage service

19 Apr 2010 | 11.50 Europe/London
After grappling with network problems for the past year or more Orange is to spend ‘the coming months’ passing on the management of its broadband network back to BT.

The move is effectively a reversal of its LLU work and will see Orange revert to reselling BT’s broadband services. A spokesperson for Orange preferred to position the move back to BT as an opportunity to improve its service, rather than a reversal in its strategy of building its own fixed line broadband service, through LLU.

The operator will no doubt be hoping to again build up numbers rather and reverse the current trend of it losing customers. Estimates suggest the telecoms company currently has 800,000 subscribers, compared to more than a million a year ago. It is also having to combat the rise of O2 which is believed to have around 500,000 broadband subscribers.

“Whilst we have made massive improvements to our network over the past two years, we don’t just want to provide a good customer experience – we want it to be exceptional,” he said.

 “Therefore, to help us deliver this, we’ve chosen to change the way we work behind the scenes and following a full review of our fixed line business, have entered into a closer partnership with our existing supplier, BT Wholesale, to allow them to build bespoke and dedicated network management systems for our fixed line service.

“We believe that by doing so, we will not only be able to maintain and improve our network performance, but we will be well placed to take advantage of future technology developments as required. It will also allow us to concentrate on enhancing the experience we offer our customers.”

Faster broadband service

Orange had been struggling to improve its broadband performance and many observers are now seeing the latest move as a sign that the mobile operator, which claims fixed line is crucial to its future growth, is now admitting it is better off allowing BT to manage its service.

The telecommunications provider, owned by France Telecom and which is due to merge with T-Mobile, claims that this is not a sign the company has given up on fixed line services, such as broadband and VoIP.

“Our fixed broadband service is an essential part of our UK strategy and service offering,” an Orange spokesperson told SamKnows.

“In fact now, as part of the UK’s largest communications company, our fixed strategy is more important than ever, and it is essential to offer the best possible experience in the best way to our customers to ensure we can lead in all areas of our business.”

BT has issued a very short statement confirming the deal to manage Orange’s fixed line broadband and communications nationally claiming it is ‘ideally placed’ to help Orange’s UK strategy of delivering “network reliability, national reach and economies of scale”.