Telecoms operator BT has announced a deal to supply network services to news group Reuters for about £1.56bn.

The deal - the largest service contract in BT's history - is part of a strategy to reduce its dependency on less lucrative fixed-line services by providing networks to multinational companies.

BT also announced it is to buy financial services network provider Radianz from Reuters for £90.8m.

The contract, lasting eight-and-a- half years, follows a series of similar wins by BT as it continues the expansion of its global services division.

BT chief executive Ben Verwaayen said it was a blockbuster deal that would bring significant benefits.