Telecommunication firms BT and Telefonica have held "highly preliminary" talks over a potential deal for the O2 mobile network.
O2 was purchased by the Spanish telecoms giant in 2005 after BT decided to spin out the previously named BT Cellnet. At the time Telefonica paid the British firm £17.7 billion to take over O2 however, Deutsche Bank has estimated the current value of the mobile network to be around £9 billion, UBS values it slightly higher at £9.6 billion.
BT said in a statement that the current discussions are still very much in their infancy and there was "no certainty that any transaction" would take place. The group add that it had received "expressions of interest" to take over two network operators, one of them is O2. A move would see BT take over the company's UK mobile business.
While there has been no confirmation, the other mobile network is believed to be EE, which is owned by Orange and Deutsche Telekom. With talks in a preliminary stage, it is not clear what BT's next step will be and whether it wants to invest in a mobile network it sold only a matter of years ago.
BT said: "We continue to develop our own plans for providing enhanced mobile services to business and consumer customers, in line with our previous announcements.
“We remain confident of delivering on these plans and have also been exploring ways of accelerating them, including assessing the merits of an acquisition of a mobile network operator in the UK."
Alongside BT's new efforts to re-establish itself within the mobile sector, the company has been investing heavily in television. The company BT Sport channel has been established power Sky Sports for the rights to football coverage in the UK.
BT Sport scored a major coup last year when it secured the right to screen all Champions League and Europa League matches from 2015 after paying £897 million.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.