TalkTalk has struck an MVNO deal with Telefónica UK to launch mobile services over its network as it plans a quad play package.
Dido Harding, chief executive, told the FT: “We see the market genuinely moving to quad play. This will accelerate that business rapidly.”
TalkTalk and Telefónica are expected to announce the deal this week, TalkTalk is expected to have access to the full range of 3G and 4G services in the UK for its customers.
The company already has about 350,000 mobile users from a previous relationship with Vodafone, which it wants to grow rapidly with cut price mobile offers for its customers.
Ms Harding said that TalkTalk would eventually build a network of in-home routers that will give a better mobile service at a lower cost. “You won’t care if you are using mobile or fixed line in future. We will put a little mini mast on back on the router and that will provide a 4G service in home or for the business,” she said. “That will give much better coverage – and as 40-50 per cent of calls are made in homes, these will go down the fixed line network and become much cheaper.”
The British TV and telecoms provider has set out aggressive targets to add customers, using first TV and now mobile as lures as it seeks to grow in its position as the cheaper, “challenger” brand to Sky and Virgin Media.