Virgin Media and O2 are to merge to create a £31 billion media and telecoms giant.
The merger is expected to be completed by next year.
Liberty Global, the US media firm that owns Virgin Media said the agreement would unlock a £10bn investment in the UK market over five years, once completed.
O2 is the UK’s largest mobile phone operator. Combining forces with Virgin Media would mean it could rival BT, which owns the UK’s second-largest network EE.
Mobile provider O2 is part of the Spanish firm Telefonica.
Chief executive, Jose Maria Alvarez-Pallete, said: “Combining O2’s number one mobile business with Virgin Media’s superfast broadband network and entertainment services will be a game-changer in the UK, at a time when demand for connectivity has never been greater or more critical.
