From September customers of TalkTalk's mobile broadband service will be switched over to O2's network infrastructure.
UK-based network giant Vodafone previously had a agreement that meant TalkTalk used their service for its mobile phone offerings but that deal is up in September and rather than renew, TalkTalk have opted to switch their mobile virtual network operator (MVNO) deal to O2 Telefonica.
The length and exact figures involved in the deal are unclear, but users will have complete access to O2's 2G, 3G and 4G networks.
TalkTalks' announcement doesn't come long after they revealed their plan to enter the multi-package home entertainment market with they new 'quad-play' proposition, which will see them offer TV, broadband, phone and mobile phone all in one deal and one single bill.
Chief executive of TalkTalk, Dido Harding said: “It gives us strong commercial terms to accelerate the growth of our mobile business and it gives us access to 4G going forward.
“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."
This is the second MVNO agreement deal that Vodafone have lost this year, having already lost BT who switched to EE. Vodafone won't be too downhearted by this latest loss as they plan to go back into the broadband market themselves and will look to take on BT, TalkTalk and the other big players in the home services industry.