Shares in TalkTalk rose 0.9 per cent to £2.92 in morning trading, after the company confirmed a new network deal with O2 owner Telefónica UK.
The multi-year contract will involve Telefónica UK providing TalkTalk with access to its 2G, 3G and 4G services in the UK, as part of a plan to build a bundled TV and telecoms business.
TalkTalk is focussing on its integrated “quad play” proposition, in which TV, broadband and fixed and mobile telecom services are offered as one.
It has already introduced a mobile SIM coming as standard with its Plus TV package - the television and video on-demand service launched in 2012 - for no additional cost.
In the UK, adoption of these bundled deals by customers has been slow to take off compared with other European countries, but last week's decision by Vodafone to launch broadband TV in the UK indicated that the market is changing.
In a statement this morning, TalkTalk described the commercial relationship as “significant”, building on its “success to date in mobile”.
The company's mobile base has grown over the past two years, with 9.5 per cent of its customers now using its mobile offerings.
Dido Harding, chief executive of TalkTalk, said:
This is a significant development for TalkTalk, building on our success in mobile to date. We are ideally placed to benefit from the market shift to quad-play, with a sizeable and growing number of customers already choosing to take mobile from us.We see real opportunities in both the near term and further out, to work with Telefónica UK to further accelerate our quad-play growth.