Orange has admitted defeat in its attempt to create its own fixed line broadband network, and decided to use the BT infrastructure.

Orange was taking advantage of local loop unbundling – putting its own equipment into BT's existing phone exchanges – but admits that things have not gone as planned.

"We are not satisfied with where we stand with broadband, as our customer base is declining and our performance is poor," Bruno Duarte, Orange's vice-president of strategy, told The Times.

"But we need to remain in fixed-line broadband so decided to fundamentally change what we are doing."

840,000 homes

Orange currently has around 840,000 broadband customers, who should now benefit from BT's involvement with a more reliable service.

The move could well spark a new push by mobile phone operators into broadband.

Bundling multiple services has proven to be a major winner in the UK market, with the likes of Sky and Virgin Media finding that customers are keen to pay one lump sum for things like television, fixed landline, broadband and, in the latter's case, mobile phones as well.

Via The Times