Vodafone pulls out of BT contract talks

Vodafone had been the so-called mobile virtual network operator for BT, providing mobile services to staff, small companies and multi-national corporations which are clients to the BT Global Services division.

The Vodafone-BT tie-up was cancelled once Vodafone acquired rival fixed-line business Cable & Wireless Worldwide, but Vodafone had been in the running to win a new contract with the firm.

Its withdrawal is likely to leave Telefonica’s O2 and EE in the running for the BT deal. EE is the country’s largest mobile operator and is owned by France Telecom and Deutsche Telekom.

The proposition for an operator has become more attractive since BT won a large amount of spectrum in a recent auction, to enable it to boost its wifi offering and consider launching a full BT-branded mobile service to consumers.

Sources have stressed however that any offering would be some time off and would rely on a partnership with an existing operator.

“We can confirm we are making good progress with our tender for a mobile partner,” a BT spokesman said.

“The 4G spectrum we obtained recently means we have a strong hand and that has been recognised in the bids we have received.”