BT to take over Orange fixed broadband network

Top UK broadband provider Orange frees itself from the responsibilities of maintaining its fixed line broadband network, after BT takes control of it through a deal reached between the two ISPs.

This would mean that Orange’s LLU network which has now more than 65% coverage will become a part of vast BT’s broadband network and the move could also ensure better broadband for 840,000 Orange customers, Orange believes. Orange will also move some 61 staff to BT.

Despite being the fifth largest service provider in UK, Orange reported sharp declines in broadband subscriptions in consecutive quarters. More than a million customers left its fixed line service during 2009 alone.

Bruno Duarte, Orange’s vice-president of strategy, told The Times that Orange’s poor performance in fixed line broadband had been due to its ageing infrasructure which actually require more investments than planned earlier. Handing its network infrastructure to BT will help Orange to provide broadband commercially viable, he added.

Orange has also merged its mobile division with UK’s major mobile operator, T-Mobile, however, both companies have agreed to sell their products under their own banner for sometime in near future.

Other providers Vodafone and KCOM, the Hull broadband provider have also entered similar partnerships with BT to get vital advantages like cost efficiency and wider & better broadband coverage to improve their market competitive positions.