BT Wholesale and Orange have announced a major agreement that will see the former providing landline services for the latter.

The move will provide a significant boost to Orange's plans to roll out broadband and landline telephone services across the UK.

Under the terms of the deal, Orange will be able to deliver a fixed-line telephony service which will be managed and maintained by BT Wholesale.

"It is our goal to provide mobile, broadband, fixed line and TV to every house in Britain," explained Asif Aziz, director of home products at Orange.

He added: "This is an important step in making that a reality by providing our customers with all of their communication needs from one supplier."

The tie-up means that Orange will be able to enter the fixed-line marketplace quicker and at a lower cost than if it had had to go it alone, the companies said in a statement announcing the deal.