O2 has signed a ten year network capacity deal with BT to support the introduction of 4G mobile data services for its millions of customers.

BT will build a new high capacity transmission network for O2 as the roll out of 4G services across the UK is expected to place even greater pressure on mobile networks.

BT will also provide O2 with a sizeable increase in backhaul capacity by delivering high speed mobile backhaul links between its mobile base stations and the new transmission network.

In addition, the new transmission network will help O2 migrate from legacy TDM (time division multiplexing) to Ethernet based IP network services, helping O2 deliver "a host of new applications to customers", said the mobile operator, whilst reducing its overall transmission costs.

Adrian Di Meo, chief technology officer at O2 UK, said: "With the UK's 4G spectrum auction complete, UK mobile data traffic is set to grow by more than 400 per cent by 2016.

"This is a huge opportunity for us, as well as a technical challenge. But through our partnership with BT Wholesale, customers of O2 will be backed by a high-performance mobile internet network which we believe will release the potential of 4G services."

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