3 goes Orange

Mobile operator O2 has been replaced by Orange as national roaming partner for the 3 network.

The deal, which is worth a large but undisclosed amount of money, provides the smallest phone network in the UK with a back-up GSM service for customers who stray outside its 3G coverage.

Describing the deal as "fantastic", an Orange spokesman told silicon.com sister site ZDNet UK his network was looking forward to a "significant and profitable revenue stream".

3 said on Wednesday "Orange tendered the most competitive bid for the supply of voice, text and data services".

A spokesperson for 3 said: "The agreement takes us a good way forward. The other networks roll out new sites, and this ensures that our customers have exactly the same voice and text coverage as on any other network."

The 3 spokesperson was keen to point out that 3 would continue to increase its own coverage across the UK.

O2 hinted that Orange may have tempted 3 with a very affordable offer which it was unable to match. An O2 spokesman said on Wednesday the network was keen to win new business "but not at any price".

The spokesman added O2 would "happily work with 3 and Orange to ensure a smooth transition". 3 is promising that the transition, which will begin at the end of this year, will not result in disruption to its customers.

Reports suggested the original 2003 deal between 3 and O2 was worth as much as £100m but the continued rollout of 3's own network means the deal with Orange is probably significantly smaller.

David Meyer writes for ZDNet UK