EE looks set to become the exclusive provider of mobile services to BT after an MVNO (mobile virtual network operator) deal was signed today. It is a multi-year agreement which, subject to final contract, will see EE replace Vodafone which has been BT’s partner in mobile communications for the last nine years. BT’s mobile network is not currently a consumer facing one; it is currently primarily used by its own employees and some corporate and enterprise customers. However following this deal it is thought that BT may well reconsider its role in the consumer market.
B-TEE mobile?
EE is the UK’s biggest mobile network and is owned jointly by Orange (France) and Deutsche Telekom (Germany). EE’s network will be transitioned to in a way BT says will “ensure a seamless transition for customers”. Interestingly BT hints that the new partner will help it build on its “strong Wi-Fi presence” which is popular with consumers.
Currently EE is quite a long way ahead with 4G coverage in the UK as it managed to start deployment of its new superfast mobile network much earlier than its rivals in the UK. EE’s 4G coverage currently reaches more than 60% of the population, with plans to cover 98% by the end of 2014. Looking at 2G and 3G service EE boasts coverage reaches more than 99% of the population. Also EE offers fixed line broadband services, with both fibre and ADSL lines, which directly competes with BT’s broadband business.
A report on Engadget reminds us that, in May this year, BT spent nearly £200 million on acquiring a slice of the 4G spectrum. At that time BT CEO, Ian Livingston, told The Telegraph in an interview that it was highly likely that customers would see BT-branded 4G SIM cards in 2014, some bundled with BT’s other products like TV, and broadband. This plan would also involve upgrading existing BT Wi-Fi hotspots to distribute 4G signal.
