Broadband providers O2 and BT have agreed a deal which will see former's data networks consolidated.

Under the terms of the five-year agreement, BT Wholesale will use its 21st Century Network platform to create a single converged system that will allow O2 to offer a range of next-generation communications services.

The network is expected to ensure O2 can continue to offer high-quality services to its consumers despite rising data volumes.

Nigel Purdy, Head of Networks at Telefonica O2 UK, said: "The consolidation of our fixed and mobile core networks is a common sense approach that will help future-proof our business and provide the best possible service for our customers."

He added that BT Wholesale "continues to impress O2 with its ability to deliver highly complex solutions".

News of the deal has come several weeks after O2 confirmed it is to begin offering home phone and broadband bundles from March.