ntl:Telewest and Virgin Mobile have agreed to merge.

The companies have reached agreement on the terms of such a deal, which will see all consumer operations re-branded under the Virgin name.

The combined company will be able to offer broadband, cable television, fixed and mobile telephony to customers.

NTL Telewest executive chairman James Mooney called the deal: "A step-change transaction not only for NTL but for the media sector as an whole in the UK."

The takeover deal values the mobile operator at £962.4 million. Virgin Mobile shareholders will be offered £3.72 per share in cash, or NTL shares or a mix of both.