O2 and BT Wholesale are strengthening their partnership to increase the range of integrated ICT services they can offer UK business clients.

The extended agreement, which covers connectivity, infrastructure and professional services, is predicted to be worth hundreds of millions of pounds over the next five years.

The companies said they hope to work together to provide UK businesses with a suite of integrated ICT services, including mobile, Ethernet and fibre broadband.

The agreement has mutual benefits for O2 and BT. O2 will be able to expand the range of business services it provides and will have access to BT's national fibre network, which boasts broadband speeds of 80Mbps, as well as the company's Ethernet footprint.

In turn, BT will gain access to O2's 4G LTE network that covers a third of the UK's population.

Ben Dowd, O2’s Business Director commented: “We have seen a huge increase in the demand for integrated ICT services since we launched our first offering three years ago. Our relationship with BT Wholesale brings together world-class mobile and fixed-line connectivity so we can offer our business customers the best possible suite of services now and for the future."

BT Wholesale's CEO, Nigel Stagg, added: “This takes our existing relationship with O2 to the next level enabling further expansion of the services O2 can offer to its business customers.

“Our national fibre network, Ethernet footprint and market-leading portfolio of wholesale products will support O2 in offering reliable and high quality connectivity that meets the growing expectations of both public and private sector organisations.”

On Thursday, BT revealed its Wholesale division was its worst-performing business unit last year with revenues were down 15 percent between January and March as regulation, particularly the Narrowband Market Review, hit home.

[Read more: BT sets out new customer-service focused strategy, outlines mobile plans]

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