Vodafone and O2 set for network partnership?
The two telecommunications providers are reported to be in advanced stages of talks, according to the Guardian.
Orange would also be affected by the deal, having already signed a network-sharing deal with Vodafone.
Matt Hatton, principal analyst at Analysys Mason, told the newspaper it makes sense for providers to "pool network resources and focus competition on other areas".
He added: "While one of the main competitive areas at the moment - mobile broadband - is ripe for differentiation based on network quality, it is unlikely that any single mobile network operator would be able to build up an unassailable lead, so spreading the cost [of rollout] will bring significant benefits in network economics."
Vodafone recently announced it had achieved maximum download speeds of 20 Mbps during testing on a new 3G HSPA+ mobile broadband connection.
It claims the new technology can provide an "enhanced mobile broadband experience" in areas such as business districts and airports.