TALKTALK has signed a deal with O2 owner Telefonica in a move allowing the broadband firm to boost its bundled TV and phone services to customers.

The agreement means TalkTalk will offer combined TV, internet and fixed-line telephone and mobile services - called "quadplay" in the industry - to more of its 4.2 million customers.

Telefonica's UK arm will share its 2G, 3G and 4G network with TalkTalk, enabling the British firm to boost its mobile service.

The move comes after rival Vodafone said last week it plans to offer home broadband and television as part of quadplay services to customers from next spring. Quadplay tends to attract more data-hungry 4G subscribers.

TalkTalk said over the last two years it has grown its number of mobile customers to 350,000, or 9.5 per cent of its total customer base by the end of September.

Last month it also announced it would provide a free mobile SIM card along with its Plus TV service, which offers broadband, TV and a fixed-phone service.

Chief executive Dido Harding said the Telefonica deal was "a significant development" for TalkTalk in building on its success in mobile to date.

She added: "We are ideally placed to benefit from the market shift to quad-play, with a sizeable and growing number of customers already choosing to take mobile from us."

TalkTalk did not say when customers will be able to use its expanded network, but there are no plans for an announcement before the end of the year.

Last week TalkTalk said its pre-tax profits for the first half swung to £20 million from a £9m loss in the same period last year.