Vodafone Could Buy T-Mobile, FT Claims
Vodafone is rumoured to be all set to bid for T-Mobile, according to the Financial Times. This report comes after months of speculation over T-Mobile UK’s sale after Deutsche Telekom, the parent company for T-Mobile, had hinted that it was not keen on carrying on with the struggling division in an increasingly tough UK mobile broadband market.
However, none of the companies has confirmed to the possibility of such a deal. The report cited sources close to the people who are aware of the decision making process. According to the FT, Deutsche Telekom first hinted on the possible sale of T-Mobile six months back. This was followed by further a speculation when the parent company reduced the book value of T-Mobile UK early last month. Orange (click for info on Orange Mobile Broadband) and 3 were considered to be the main contenders for the bidding at that time.
Vodafone currently having a 25 percent market share will hit the 40 percent market share mark if it is able to clinch the deal. However, the deal undoubtedly is going to invite a great deal of interest from the telecom regulators. The four biggest operators currently rule the UK’s mobile broadband scene, each having a similar market share. The Vodafone-T-Mobile deal is going to bring in imbalance in the competitive market place, a scenario which is likely to upset the regulatory body, Ofcom.
