Vodafone Bidding for T-Mobile, Says FT
Vodafone is likely to compete with 3 and Orange for the T-Mobile UK buy-out. The report published in Sunday’s Financial Times cited reliable inside sources, who were well aware of the happenings. However, neither Vodafone nor T-Mobile has confirmed the rumours.
The Financial Times reported that Deutsche Telekom has been considering the sale of its struggling subsidiary company for more than six months. They are also reported to have diminished the value of T-Mobile early last month, which some interpreted as the sign of an impending sale. Until now Orange and 3 were considered to be the major contenders for the buy out, but it seems now that Vodafone has also entered the fray.
The acquisition of T-Mobile by Vodafone would create the UK’s largest mobile broadband network with an almost 40 percent market share. The purchase of T-Mobile would certainly draw the attention of regulators in the telecom industry. One player gaining such a huge market share is going to disrupt the competitive structure of the telecom market. Ofcom is likely to be unhappy with that kind of a situation. Currently four operators with an equal share of market rule the mobile broadband scene in the
