Virgin Media has signed a £98m fixed-line voice network management contract with BT to cut its overall communications costs to supply customers.
Under the terms of the deal, BT Wholesale will manage the operation and maintenance of Virgin Media's UK fixed-line voice switching network, as well as a number of Virgin Media's existing support contracts with third-party hardware and software suppliers for transmission equipment on its behalf.
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Virgin Media's fixed-line voice switching network supports around 20% of all landline telephone connections in the UK, said BT. More than 180 Virgin Media employees have transferred to BT Wholesale as part of the agreement.
Paul Weir, managing director of networks for Virgin Media, said, "Our telephony switching network remains an important asset within Virgin Media, and by using BT Wholesale we gain operational cost efficiencies ahead of the network's eventual upgrade to voice over IP technology, whilst keeping guaranteed levels of service for our customers."