BT and O2 join forces to boost mobile broadband experience

Telecommunication giants BT and O2 have signed a new five year deal that is designed to deliver an improved mobile broadband service and reduce the costs incurred by both firms.

The agreement will see BT Wholesale install new network infrastructure that should enable O2 to keep pace with a predicted upsurge in the amount of bandwidth required by users of laptops and mobile phones.

O2's Business Broadband, which offers a maximum mobile download speed of 20 Mbps, will also be expanded to offer coverage to users outside of the firm's network as part of the deal. However, the new service will be limited to a connection of up to 8 Mbps.

O2 became the last major network to enter the mobile broadband market last month when it launched a new service that enables people to surf the web via 3G or Wi-Fi.

The USB modem used to connect to the internet it currently free for consumers signing up to an 18-month contract for £20.