Virgin Media signs £98m network outsourcing deal

Virgin Media signs £98m network outsourcing deal

BT will manage the company's fixed-line voice systems over a five-year contract

Virgin Media has signed a five-year, £98m managed network contact with BT.

The arrangement will see BT Wholesale manage the operation and maintenance of Virgin's fixed-line voice switching network, along with a number of existing support contracts.

Virgin, whose network supports around 20 per cent of all UK landline connections, will transfer 184 staff to BT as part of the agreement.

The deal will allow the media company to save money and prepare for future upgrades to its telecoms systems, said Paul Weir, managing director of networks.

“Our telephony switching network remains an important asset within Virgin Media, and by utilising BT Wholesale we gain operational cost efficiencies ahead of the network's eventual upgrade to voice over IP technology, while keeping guaranteed levels of service for our customers,” said Weir.