TalkTalk to launch mobile phone service with Vodafone

Internet and phone provider TalkTalk is to launch a mobile phone service under its own brand, after signing a deal with Vodafone to use its network.

The mobile phone service will target the 4.2 million existing TalkTalk broadband customers, and will include contract mobile voice tariffs and mobile broadband as part of the service.

TalkTalk is likely to offer cheaper monthly contracts to customers, adding to pricing competition in the sector generally.

Vodafone and TalkTalk will now rival Virgin Media, which is currently the only company to offer broadband, home phone, mobile and TV services.

Vodafone won the deal over a number of bidders. Charles Dunstone, chairman of TalkTalk, said that Vodafone was chosen due to its track record of success with mobile virtual network operations.

TalkTalk split from mobile phone retailer Carphone Warehouse Group PLC at the end of March, earlier this year.

TalkTalk announced its initial plans to launch mobile phone services in February, earlier this year.