BT has distanced itself from weekend reports that it is planning to buy back MMO2 - the mobile business it spun off less than two years ago.

According to reports, investment banks have sidled up to BT suggesting that the telco borrows a stack of cash to buy back the mobile operator.

The story, though, has been dismissed as little more than an open shot at the beginning of the "silly season".

Dismissing the story a BT spokesman told The Register: "It is not surprising that this story appeared during August ("silly season") when City sources have too much time on their hands."

Last week, BT returned to the mobile mass market after confirming that it had teamed up with T-Mobile to offer a new service aimed at families. BT will plug the service while piggybacking on T-Mobile's network.

BT Mobile Home Plan (remember, the tariff is not just for mobile home owners) is the telco's first major step back into the mobile mass market since it flogged its mobile arm MMO2 almost two years ago. ®

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