Orange has struck a deal with BT which enables it to offer broadband services via BT's extensive fixed-line network.

The move should mean that Orange will be able to offer an improved internet service and widen its coverage across the country.

As part of the same agreement, BT will take over Orange's existing fixed-line infrastructure and transfer it into its own network.

Orange will be hoping that the deal places it in a more competitive position alongside the other leading broadband providers.

Bruno Duarte, vice-president of strategy at Orange, told the Times newspaper that drastic action was needed to transform the commercial performance of the company's broadband offering.

"We need to remain in fixed-line broadband, so decided to fundamentally change what we are doing," he explained.

Orange last week unveiled its range of new business broadband packages with the benefits of increased flexibility, unlimited data usage and a clear pricing structure.

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