Mobile Group Vodafone and its adversary O2 are in preliminary talks of merging their networks in the biggest shake up of the UK’s mobile phone industry, reports the Guardian.

The partner France Telecom SA’s Orange intends to seek T-Mobile and 3’s permission to join their network sharing venture in the industry restructure that could leave UK with only two networks.

With the reduction in the operators competing, there would be a cut down in the existing 51,000 base stations, leading to a cut in costs amid the economic meltdown.

The brands will continue to operate in their own brand names.