Vodafone and Liberty Global have confirmed they are in talks about forming a joint venture in the Netherlands.

The two companies said any deal would incorporate both companies’ local operating businesses but that the discussions do not extend beyond this.

The logic behind a tie-up rests on merging Vodafone’s mobile base with Liberty’s cable footprint.

Vodafone has 5.1 million mobile and 73,000 consumer fixed line customers in the Netherlands.

Revenues in the market fell to £693 million in the six months to September 2015, down from £751 million a year earlier.

However, Vodafone said service revenue grew 1.1 percent with consumer fixed line and enterprise as the main drivers of growth.

[Read more: Vodafone sues KPN for abuse of a dominant market position in the Netherlands]

Liberty’s local business, Ziggo, is the largest cable television operator in the Netherlands.

It has 4.1 million customers who are signed up to buy a range of TV, video, broadband, and fixed-line telephony (in the form of VoIP) services.

In addition, it has 181,000 mobile subscribers.

Like-for-like revenues in the nine months to September 2015 fell 1.2 percent to $2.1 billion.

The announcement follows talks the two operators had last year about a possible exchange of assets.

Those discussions broke down in September after four months.

Last week, the CEO of Vodafone Netherlands said operators must do more to communicate the benefits of big data with their customers.

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