Virgin Media signs BT for £98 million

Virgin Media has signed a five-year, 98 million contract with BT Wholesale to manage its telephone switching network ahead of a switch to internet telephony (VoIP).

BT Wholesale will manage and maintain Virgin Media's fixed line switching network.

Paul Weir, managing director of networks for Virgin Media, said: "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 Internet Protocol technology, whilst keeping guaranteed levels of service for our customers."

Virgin Media's voice switching network supports about a fifth of all landline phones in the UK.