Vodafone UK has struck a deal with BT to use the UK fixed-line incumbent’s new “21CN” IP-based network for mobile backhaul. The deal is aimed at ramping up Vodafone’s backhaul capacity in order to support high-bandwidth mobile services without requiring it to invest in its own infrastructure.
Under the terms of the five-year deal, BT’s wholesale division will provide and manage high-speed Ethernet connectivity between Vodafone UK’s basestations and its core network. BT’s network claims to offer backhaul speeds of up to 60 Mbit/s.
As well as avoiding capital investment risk, Vodafone said the deal would allow it to benefit from BT Wholesale’s economies of scale and national reach.
Backhaul is considered a significant “bottleneck” in the delivery of next-generation mobile data services such as video, gaming and mobile internet, which are all bandwidth-intensive.
Analysts suggest that BT may seek to recoup its investment in 21CN network by looking to sign-up other UK mobile operators. BT Wholesale signed a similar backhaul agreement with T-Mobile UK in July 2007.
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