British telecoms giant Vodafone and Liberty Global, owner of cable firm Ziggo, have confirmed they are in talks about creating a joint venture in the Netherlands.

Vodafone said in a statement on Tuesday the focus is on a joint venture ‘that would incorporate both companies’ local operating businesses’.

‘The discussions are ongoing and do not extend beyond the creation of a joint venture in the Netherlands,’ the statement said. ‘There is no certainty as to when or whether any transaction will be agreed.’

KPN

An alliance between Ziggo and Vodafone would create a weighty opponent for former state monopoly KPN, the Financieele Dagblad points out. Vodafone is number two in the Dutch mobile phone market and Ziggo’s cable network covers 90% of the Netherlands. Ziggo is also active in telephony.

The paper said an alliance would put Vodafone out of the race to take over Deutsche Telekom’s Dutch subsidiary T-Mobile Nederland which is up for sale. T-Mobile is number three in the Dutch market.