The agency had been promoting the firm's innovation programme, but its contract expired on 30 September and BT has opted to take PR in-house.
Suzy Christopher, senior PR and comms manager in BT's group technology office - within which its innovation arm sits - described the decision as part of a drive to improve ‘cost-efficiencies' across the entire company.
‘The decision was not a reflection on Bite's performance but was an internal decision driven by the need to make cost savings,' said Christopher, who will now manage PR for the innovation arm.
The company declined to say whether the drive to shave costs would affect other agencies on its roster, or indeed if any other agency relationships were actively being reviewed.
Bite MD David Hargreaves said he was ‘disappointed', but hoped to work with BT in the future.
‘We are always disappointed to lose a client for reasons out of our control, especially one where the team has enjoyed working with the people, issues and technology involved,' he told PRWeek.
BT's chief group technology office is involved in the development of technology ranging from ‘next-generation' home entertainment to security devices.
The group is also involved in BT's ‘21CN' project.