The firm, which already offers SIM-only and data mobile products, is lining up a senior appointment from a mobile company with a start date of next year. TalkTalk already has 50,000 customers receiving mobile services.
It is understood the handset proposition will shy away from high-end smartphones, including Apple's iPhone.
The firm has heritage in the handset market, having previously been a subsidiary of Carphone Warehouse before being demerged in March 2010. Carphone Warehouse co-founder and chief executive Charles Dunstone remains the chairman of TalkTalk.
Separately, TalkTalk plans to add TV to its existing packages through a partnership with internet-connected television service YouView. It is planning to trial YouView with 10,000 customers as early as March in preparation for a full launch later in the spring.