BT has unveiled a new Business and Public Sector unit as part of a wider restructure that will take effect from April.
The announcement came as the operator unveiled its financial results for the three months to December.
The new division will serve businesses as well as the public sector in the UK and Ireland.
It will be comprised of the existing BT Business arm along with EE's business division and those parts of BT Global Services that are UK focused.
Graham Sutherland will lead the new division, which has around £5 billion of revenues.
As expected, EE will begin life at BT as a standalone business arm, focused on the consumer market, led by new CEO Marc Allera.
It follows the announcement over the weekend that a slew of executives will follow former CEO Olaf Swantee out of the door.
Pippa Dunn, CMO of Brand & Consumer, CFO Neal Milsom, Customer Services Chief Francoise Clemes and Chief Performance Officer Ralf Brandmeier will leave later this year.
BT will continue to operate its existing MVNO service BT Mobile, which runs on EE's network, as part of its consumer arm.
BT’s Wholesale division will be expanded to include EE’s MVNO business as well as some specialist businesses such as Fleet, Payphones and Directories.
Gerry McQuade, currently Chief Sales and Marketing Officer of Business at EE, will lead the new arm, to be called Wholesale and Ventures.
BT Chief Executive Gavin Patterson said: “We will operate a multi brand strategy with UK customers being able to choose a mix of BT, EE or Plusnet services, depending on which suit them best.
“The acquisition enables us to offer great value bundles of services and customers are set to be the winners as we compete for their business.
"The acquisition provides us with a chance to refresh our structure and we have done that by creating a major new division that will focus on businesses and the public sector in the UK and Ireland.
“We want to support those sectors by offering customers the very best services whether that be dedicated private lines, network products such as fibre broadband, mobile solutions, IT services or cyber expertise to keep them safe.”
BT unveiled its new structure as it revealed revenues in the three months to December rose three percent to £4.6 billion.
Earnings also rose three percent to £1.6 billion.
The operator’s Consumer arm was again the standout performer, as sales grew 11 percent on subscriber growth.
BT Mobile’s customer base rose above 300,000, up from 200,000 at the end of October.
BT also added 97,000 TV customers, taking its customer base to 1.4 million.
Openreach, the future of which remains uncertain as the industry awaits Ofcom’s report in the infrastructure arm, saw revenues grow three percent during the quarter.
It said around 5.5 million homes and businesses are connected to its fibre broadband network, representing 22 percent of premises passed.
Openreach added 250,000 retail fibre customers during the quarter, taking the total to 3.7 million.
BT’s Global Services, Business and Wholesale arms all saw revenues decline by one percent.
Patterson said: “This is a strong set of results with good numbers across the board.
“Underlying revenue excluding transit was up 4.7 percent this quarter, our best result for more than seven years.
“BT Consumer had a standout quarter, increasing its overall line base for the first time in well over a decade and capturing 71 percent of new broadband customers.”