Services provider Huawei has signed a new deal to manage O2's network in the UK.

Under the terms of the five-year agreement, Huawei will manage the planning and implementation of the network, taking on 56 O2 staff and 62 contractors.

Huawei will be charged with overseeing transmissions between the O2 network and the rest of the UK's communication infrastructure.

The deal is Huawei's first major managed services agreement in the UK. The firm already works with Telefonica in a number of other markets worldwide.

Announcing the move, Huawei's UK CEO Victor Zhang said: "Today's announcement is an important first step in building a world-class managed services capability in the UK.

"The agreement is a long-term strategic commitment from both Huawei and Telefonica UK to deliver the best in class management of a core network."

He added: "Today's agreement means we are extending our relationship to the UK."