BT Group is considering a move to acquire broadband rival TalkTalk.

The Telegraph reports that BT is in the early stages of a potential move for the struggling TalkTalk, according to City sources.

Reports come just a week after it emerged that UK Broadband company TalkTalk missed several payment deadlines to broadband suppliers, including BT’s Openreach and alt-net CityFibre.

An acquisition of TalkTalk would see BT add the broadband provider’s 3.2 million customers.

At present, TalkTalk has around £1.2 billion ($1.62bn) worth of debt, and needed a £400 million ($541m) refinancing agreement with lenders last year to avoid collapse. This included a cash injection of £235m ($319m) from shareholders, including the company’s executive chair, Sir Charles Dunstone.

Since the beginning of the year, TalkTalk has already lost 400,000 customers.

BT is reportedly interested in buying TalkTalk, the UK’s fourth-largest broadband provider, over fears that TalkTalk’s struggles could impact its own business. The company’s Openreach network hosts the majority of TalkTalk’s customer-base, while CityFibre supports around 30 percent.

Rival broadband provider Virgin Media O2 has previously approached TalkTalk over a takeover, holding talks with the company last year.

In 2021, Toscafund Asset Management, previously the second-largest shareholder in the company, completed a takeover of TalkTalk for £1.1bn ($1.49bn), taking the company private.

Last year, the company split its business into three units: B2B Wholesale Platform, TalkTalk Consumer, and TalkTalk Business Direct.