TalkTalk signs deal with O2, dumps Vodafone

Mobile operator TalkTalk has signed a deal with O2, operated by Telefónica UK, that would see its mobile virtual network operator (MVNO) use the operator's network in future instead of Vodafone's, IT Pro reported.

TalkTalk is meanwhile, preparing to roll out a 4G network for its customers.

According to the company, O2's network represented a ''major step forward in our long term strategy to build a small cell and Fibre-To-The-Premise network''.

Under the multi-year deal TalkTalk would be able to user O2's 2G, 3G and 4G services across the UK.

According to the company, the agreement would allow it to offer its four million customers a high-quality mobile service and enable it to building up quad-play business over the medium term. TalkTalk had a 350,000 strong user base for its MVNO or 9.5 per cent of its total base.

''We are pleased to be able to announce our commercial MVNO agreement with TalkTalk, which builds on our heritage of being the trusted provider for many notable MVNO, public and private sector organisations in the UK,'' said O2 chief executive Ronan Dunne.

''This recognition, as a leading source of essential connectivity, comes as a result of our continued and significant investment in our nationwide network. We welcome the start of what we hope will be a successful and prosperous relationship for both parties.''

The telecoms and TV sector had emerged as a battleground between firms that sought to offer all four services or "quad-play" (a combination of mobile phone, broadband, landline and TV), express.co.uk reported.

The link between TalkTalk and O2 was revealed a week after Vodafone said it was planning its own move into TV and broadband.

According to Talk Talk chief executive, Dido Harding, this built on the company's success in [the area of] mobile phones.

He added, the company was ideally placed to benefit from a shift to quad-play with a number of customers already choosing it for mobile.

Under the tie-up with O2 customers would be offered a 4G service - good for downloading large amounts of data.

According to analysts at RBC Capital Markets, TalkTalk could reach 700,000 mobile customers by 2017.