Announcing its first Quarterly results which showed a net addition of 34,000 customers for the three month period up to 30 June 2010, the second largest broadband provider in UK, Talk Talk has confirmed its deal with mobile operator, Vodafone to offer its own voice and mobile broadband services from this autumn.

Talk Talk customers will get the new services which will use Vodafone’s mobile networks under the mobile virtual network operation (MVNO) agreement reached between the two ISPs. The MVNO deal could help TalkTalk retain its existing fixed line phone and broadband customers in competitive market, however, new revenues can be limited, some analysts feel.

Yesterday, Talk Talk has reported that its broadband base has exceeded 4.23m which compares to BT’s 5.2m and cable giant, Virgin Media’s 4.21m figures. In Q4 2009, the ISP showed better growth figure, adding more than 42,000 customers.

Despite the slightly slower customer growth in Q1, Talk Talk said this was very solid performance. “We maintained our momentum in the broadband market, as our brand and tariffs continued to appeal to customers seeking straight-forward, value-for-money broadband and voice services.” TalkTalk’s Chairman, Charles Dunstone said.

TalkTalk has unbundled over 1,748 exchanges which can deliver broadband and phone services at competitive prices to more than three-fourths (80%) of UK homes. Currently, 77% of its customers are connected by its unbundled network (LLU) which can deliver faster speeds of up to 24Mbps, the company said.

“The progress made is best demonstrated by ending the quarter with 77% of our broadband base unbundled onto our Next Generation Network.” TalkTalk Chief added.

The average revenue per user (ARPU) rose marginally from £23.30 in 2009 to £23.90 in Q1 2010, while the total revenues were up by 31% to reach £444m.

Meanwhile, leading digital TV operator and the fourth largest UK ISP, BSkyB also released its quarterly report which showed its broadband base has grown to reach 2.6m, adding 119,000 customers in the recent quarter, which compares to 101,000 net additions made in the previous quarter.