TalkTalk mobile customers could be set to see a change in their service provider following reports that the company may be seeking to divest its mobile business to refocus on supplying broadband.
The Financial Times reports that the firm has already opened talks with a number of other providers - including Vodafone, O2 and Virgin Media - about a potential sale, as TalkTalk is looking to reorient its strategy to focus on broadband services.
TalkTalk began life as a budget internet provider, but branched out into mobile services in 2010, eventually accruing a customer base of around 913,000 users. However, the market for smaller mobile brands has become increasingly competitive in recent times, leading the company to reconsider its strategy.
Having abandoned plans to build its own mobile infrastructure and systems alongside a revamped virtual network, TalkTalk has reportedly opened discussions with prospective partners focusing on whether it could transfer at least part of its existing mobile base to a new provider.
It is also proposing an arrangement through which it would sell other mobile operators' SIM cards alongside TalkTalk broadband packages, offering a discount to those who buy both.
However, any such move would be complicated by the fact that 12 per cent of TalkTalk customers are already on deals that include broadband, landline, pay TV and mobile services in the same package, while one-quarter of its broadband users also receive mobile services.
A spokesperson for the company said: "We are in advanced discussions with a number of potential partners, including O2, to agree a low-touch retail arrangement that will enable us to continue to offer a compelling mobile service to all our broadband customers."
This comes as part of a broader push by TalkTalk's new management team - led by Executive Chairman Sir Charles Dunstone and Chief Executive Tristia Harrison - to bring the company back to its roots as a provider of low-cost fixed-line broadband services.