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The partnering agreement will lead to the firms closely aligning each others' next-generation network strategies.
Cable & Wireless is already Vodafone's preferred connectivity partner for its enterprise customers.
David Shaw, chief commercial officer at Cable & Wireless Europe, Asia and US, said, "Our strategy is to focus on the largest users of telecoms and to deliver what they want, when they want it."
Marcus Webb, Vodafone UK head of carrier services, said, "We are looking to grow our market share in the UK and wanted a partner that understood our goals and could deliver against them.