Mobile phone operator Vodafone is planning to sell its own-brand phones on the consumer market for the first time, a report from The Birmingham Post said.
The report said the Newbury, Berkshire-based firm had teamed up with Chinese manufacturer Huawei Technologies to supply it with branded 3G handsets across 21 countries for at least five years starting September.
The agreement also marked Huawei's first significant entry into the European handset market, the report said.
Vodafone currently operates on 3G phones made by industry players such as Nokia, Motorola and Sony Ericsson, which customers usually paid for in a single payment of 100 pounds upwards or in monthly installments, the report said.
Vodafone said the agreement with Huawei would enable it to offer phones to customers at more competitive prices, the report said.