Europe : Vodafone UK announces the creation of a significant new partnership arrangement with BT, bringing many benefits and opportunities to the customers of both organisations.

Vodafone has been chosen by BT to supply basic mobile network services such as voice and data services in order to:

Become BT's mobile partner in its fixed mobile convergence (FMC) activities, the first product being BT's BluePhone

Provide mobile services for all BT's internal and external requirements through a Mobile Virtual Network Operator arrangement

This deal is for a five year period, and further extends Vodafone and BT's already close relationship. It will enable both companies to develop advanced products and services in the future while maximising the network assets of both.

Bill Morrow, Vodafone UK's Chief Executive Officer comments: "This deal has huge attractions for both organisations. As the mobile partner in BT's convergence strategy, this enables Vodafone to maximise its network and service assets while generating additional revenue from a new source. This deal also reflects the unique dynamics of the UK mobile market in which there are five network operators and several MVNOs, all aiming to increase their customer base. Vodafone remains fully committed to a mobile strategy and is happy to share the success of mobile communications."