Satellite TV operator Sky has made its move in the battle for "quad play". The firm has announced that it is launching a mobile phone service next year after striking a deal with O2 owner Telefónica.
As the Guardian reports, the move marks the latest development in the rapidly consolidating UK telecoms sector, with BT having signalled its intentions last month to acquire EE in a deal worth £12.5 billion.
Sky plans to offer mobile connections to its 11.5 million customers through a wholesale partnership with 02, enabling it to offer consumers a bundled package comprising television, broadband, fixed-line home phone and mobile.
The pay-TV firm is already in a position to provide three of those services, but Jeremy Darroch, chief executive of Sky, says the partnership would allow it to offer "a range of exciting new services and exploit the opportunities for growth in the fast-changing mobile sector".
Ronan Dunne, chief executive of Telefónica UK, explained that the agreement will widen consumer choice further still and emphasises the "lively competitiveness of the UK market".
Analysts say Three, which is in talks with O2 over a merger, could profit from the Sky-Telefónica partnership, as the agreement could prompt telecoms regulator Ofcom into approving a deal with O2, once terms have been agreed.
Both Ofcom and European authorities could have concerns over what a fusion of the two operators would mean for consumers, as it would reduce the number of network operators from four to three.
Up until now, British consumers have enjoyed some of the best mobile deals in Europe as a result of the level of competition in the market, with Three acting as a value proposition.