The deal with cable company Liberty would have allowed Vodafone to offer broadband, landline and television packages.
Talks to allow the world’s second largest mobile operator, Vodafone, to branch out into broadband and television have broken down without agreement, both sides have confirmed.
The discussions with cable company Liberty Global, which owns Virgin Media, were first announced in June, when Vodafone said it was considering "an exchange of assets" with the firm.
A deal would have allowed both Liberty and Vodafone to converge their resources so each may be better able compete in a European market increasingly leaning towards all-inclusive package offers.
But earlier this month Liberty chairman John Malone said the companies were struggling to progress in the talks, indicating that there was an issue around ensuring any deal would be "mutually successful".
A source close to the companies is now reporting that the discussions fell apart due to a failure to agree on the value of assets held on both sides.
Vodafone's shares dropped almost 4% on Monday morning on the news, while Liberty Global's value was also down.
The telecoms industry is undergoing a period of merger deals after Britain’s biggest fixed-line (landline) and mobile phone operators, BT and EE, agreed to join forces in February.
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