TalkTalk is to resell mobile services from O2 UK as it refocuses on its fixed business.

The low-cost provider closed its TalkTalk Mobile service, which operated as an MVNO on O2’s network, to new customers in July last year.

It had announced that it was looking to change its mobile proposition two months previously.

The new tie-up gives TalkTalk customers access to the Telefónica-owned operator’s network as well as unspecified exclusive deals.

Existing customers of TalkTalk Mobile can continue using the service as normal until their contract runs out, at which point they will be offered an O2 deal.  

Customers have had the option to move to O2’s network since December, TalkTalk said.

A spokesperson said the move was part of a “simplification” of TalkTalk’s business.

“This agreement with O2 gives TalkTalk customers access to a wider range of great value 4G services,” a statement read.

“It’s great news for customers and allows TalkTalk to continue investing in our fixed network, delivering even better landline, broadband and TV services.”

TalkTalk, which has around 850,000 mobile customers, will now focus on its fixed-line broadband, telephony and TV offerings.

The company recorded a net loss of £71 million in the six months to 30 September, while revenues declined from £869 million to £828 million.

O2 said the partnership would complement its own direct channels and provide “an opportunity for entry into a market segment we may not otherwise reach as effectively.”

Earlier this month, the company shuttered its smart home service after poor sales.

Parent Telefónica is expected to take the company public after it cancelled an initial IPO

Read more: Telefónica top-brass have “huge passion” for UK, says O2 CEO, as he eyes 5G

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