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As O2 gets ready to compete in the UK`s wireline voice market this March, the service provider is turning to its old parent company BT to oversee its wireless and wireline core network connections. While the financial terms of the five-year deal were not revealed, BT Wholesale will consolidate O2`s wireless and wireline networks onto its 21 CN network platform.

What`s driving O2 to take this route is the increased demand for wireless and wireline data services. O2 believes that by consolidating its network onto BT`s network platform it will not only be able to meet customer demand for data services, but reduce capex spending.  

This is not the first time the once-aligned carriers have worked together. Currently, O2 uses BT Wholesale for core network management support and a managed network service that enables it to target business customers with traditional wireline voice and broadband services.

"As we move to an all IP world and as data traffic volumes increase, the consolidation of our fixed and mobile core networks is a common sense approach that will help future-proof our business and provide the best possible service for our customers," said Nigel Purdy, Head of Networks, Telefónica O2 UK Ltd in a release.