MOVES by easyJet founder Stelios Haji-Ioannou to launch a low-cost mobile service have been boosted by an agreement to rent airtime from T-Mobile.

The entrepreneur expects the joint venture - allowing users to go online to order Sim cards and airtime for their handsets - to begin in March.

The involvement of T-Mobile owner Deutsche Telekom is a breakthrough for the easy-branded service, which will see Danish telecoms company TDC handle billing and the running of the network.

The concept has already proved popular in Denmark, where it has gained a ten per cent market share in four years.

Announcing the airtime agreement with T-Mobile, TDC said the absence of handset subsidies and subscription fees made the service attractive.

The venture will offer voice and text (SMS) services and will cover a different market to the rest of the sector, where operators are pushing Internet and camera-based phones. Details of prices have yet to be announced.

The company said talks with operator Orange about resolving possible confusion over the use of the orange easyGroup logo were continuing.

TDC also has the opportunity to launch the service in 12 other European countries after an agreement with easyGroup in August.