Vodafone and Three are exploring plans to launch a TV service following their £15bn mega-merger.
The mobile providers have held initial discussions about rolling out a subscription TV service as they prepare to mount a fresh challenge to BT.
The proposed move into TV would underscore efforts by the newly merged company to establish a stronger foothold in the broadband market.
Telecom companies often bundle TV services with their internet connections as a way of enticing more customers onto their networks. BT-owned EE and Virgin Media already offer similar pay-TV bundles.
While talks are believed to be at an early stage, the mooted service would likely offer live TV as well as access to third-party streaming services such as Netflix and Amazon Prime.
Recall that Vodafone and Three in December secured regulatory approval for a tie-up that will create the UK’s largest mobile provider with around 27m customers and reduce the number of network operators from four to three.
Bosses have long argued that the deal, which is expected to complete in the first half of this year, was necessary to give them the scale to upgrade sluggish 5G connections and challenge rivals EE and Virgin Media O2.
But discussions over a TV service highlight the companies’ focus on broadband, as the rollout of full-fibre connections continues at pace.
Vodafone has been placing a greater emphasis on its broadband offering in recent years.
While the company does not operate its own infrastructure, it has signed wholesale deals with both BT’s Openreach and challenger CityFibre, which insiders argue give it the broadest offering to consumers of any UK telecoms company.
Narrowing margins in the telecoms industry have prompted many operators to offer multiple services in a strategy known as convergence. This is aimed at increasing loyalty and driving a higher average revenue per customer.
But a growing focus on non-core activities has also proved controversial.
Allison Kirkby, BT’s chief executive, is rowing back on plans to sell a range of products and services, including smart fridges and insurance under the EE brand, as she seeks to refocus the telecoms giant on its core offering.
Even after the merger, Vodafone and Three will remain a small player in broadband with a market share of just 6pc.
A Vodafone spokesman said it was too early to comment on the company’s plans post-merger. Three was contacted for comment
