Mobile operator O2 could soon put its Airwave digital radio network up for sale after a surprise decision to review the business, according to a report in the Times newspaper.

The paper said that O2, which is owned by Spanish telecoms giant Telefonica, has lined up a number of banks to look at options for the company, which it described just last month as a “valuable part of the group.” 

Airwave is an encrypted communications network for the exclusive use of the UK's emergency services and rescue operations. It has 150,000 users, and is used by every police force in mainland Britain as part of a £2.9bn government contract until 2019. 

In March this year, O2 spent £800m rolling out the network across the UK and there have been rumours of plans to extend the operation to other European countries. With EBITDA of £72m in 2005, analysts estimate that the business could fetch up to £2bn.

Potential buyers are already reported to have taken note, and Texas Pacific Group, owner of France's television and mobile phone network TDF, has been mentioned as a likely bidder. Private equity and large infrastructure funds are also tipped to be interested.