UK broadband provider TalkTalk will partner with Telefonica O2 to provide mobile phone services including 4G mobile broadband.
TalkTalk, a mobile virtual network operator (MVNO), has previously been using infrastructure owned by Vodafone. The partnership with Telefonica O2 will provide TalkTalk’s 348,000 customers with cheaper mobile coverage within homes and access to O2’s femtocell technology, the company said.
"We have 4.2 million homes with a TalkTalk router sitting in them. We can put a femtocell, a little mini mast, on the back of that router and use our fixed-line network to offload calls and data," said TalkTalk’s CEO Dido Harding.
"BT is working on the same thing, Virgin is working on the same thing. What this means is quad play is genuinely emerging."
In telecommunications, quadruple play or quad play means combining broadband Internet access, television and telephone with wireless service provisions.
TalkTalk, along with rivals BT and Virgin Media, is offering this combination of fixed-line, broadband, TV and mobile services to boost revenue and improve customer loyalty.
Mobile operators are moving into the same territory from the opposite direction, with Vodafone saying last week it would launch home broadband and TV.
Meanwhile broadband market leader BT is preparing for a bigger push into mobile services next year, creating a hybrid network made up of 4G radio spectrum which it already owns, EE's network under an MVNO deal, and wireless links inside and outside customers' homes to offload mobile traffic onto its fixed-line network.
TalkTalk, which targets the value segment of the market, plans something similar.
"It gives us strong commercial terms to accelerate the growth of our mobile business and it gives us access to 4G going forward," Harding said about the deal with O2.
TalkTalk's shares were trading up 0.9 per cent at 292.5 pence at 08.36 GMT.