Following its announcement of deals with Vodafone AirTouch, Cable & Wireless Communications and Kingston Communications, Centrica (the owner of British Gas) is to create at least 800 jobs as part of its drive to become a telecoms company.

Old Trafford will become the headquarters for its phone business. The group, which already employs 3,000 staff in Manchester says the first 450 jobs will be filled by July, with staff for call centres, sales and marketing and technical posts the first to be appointed.

Vodafone AirTouch will provide the infrastructure for Centrica's mobile phone service and advise on customer service and billing. The services company recently announced deals with cable company Cable & Wireless Communications and Torch Telecom, a division of Kingston Communications, to provide fixed telephone line services.

Richard Byatt