Orange ditches its broadband network in favour of BT's

Orange broadband has announced it will be abandoning its own fixed-line broadband network in favour of BT's.

In an attempt to increase coverage and improve its broadband packages, Orange (which is merging with Deutsche Telekom's T-Mobile in the UK) has confirmed it would pass over management to BT, freeing up the funds it spent on network infrastructure to invest in marketing and customer services.

The decision to jump ship from its own network and piggyback off of BT's national network means Orange, as an internet service provider, has the potential to double in size. It will also have more clout to go head-to-head against rival broadband providers Virgin Media and TalkTalk.

Orange had previously pumped hundreds of millions of pounds installing its own broadband equipment into telephone exchanges. It currently stands as the UK"s fifth-largest broadband provider but admits its customer base is in decline.

Last year, subscribers fell below the one million mark for the first time in a decade. Currently, it has more than 800,000 fixed-line broadband customers, although its network only serves around 65 per cent of the country.

Speaking to to The Times newspaper, Orange's vice-president of strategy, Bruno Duarte spoke of the company's plans to outsource its network and admitted Orange's investment in broadband hadn't quite gone to plan: "We are not satisfied with where we stand with broadband, as our customer base is declining and our performance is poor. But we need to remain in fixed-line broadband so decided to fundamentally change what we are doing."

Orange's decision to ditch its own infrastructure puts it in a similar position to Vodafone who also offers its customers broadband services on a BT network.