Colt wins £1.6m network deal with 3i

European venture capitalist 3i has signed a £1.6m three-year deal with Colt Telecom as part of a plan to shift its data networks to a single supplier.

Under the deal, telco Colt will manage an IP virtual private network which it has already set up, in place of 3i's legacy network.

3i refused to name the telecoms carriers it had dropped. The company said it hoped the network merge would be cheaper than paying a number of providers.

Colt has promised faster communication speeds and traffic prioritisation, which ensures critical applications always get right-of-way in busy periods.

John Tracey, head of information systems at 3i, said in a statement: "It is essential we have the right infrastructure underpinning our team. Colt's advanced network across Europe was the key factor in giving this critical contract."