Vodafone Plans T-Mobile UK Bid

Author	Gordon Kelly
Published	29th Jun 2009

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So could Vodafone be about to swallow up the UK arm of T-Mobile?

That's the news coming out of the Financial Times today and so far Vodafone has declined to comment. A takeover would make Vodafone far and away the country's biggest network with a 40 per cent market share. It currently sits second with 25 per cent. O2 leads the way on 27 per cent, while Orange, T-Mobile and 3 are the next biggest players at 22 per cent, 15 per cent and eight per cent respectively.

Vodafone isn't said to be put-off by anti-competitive regulators such as Ofcom since networks with such dominance already exist in France, Italy and Spain. The development also fits in with Vodafone CEO Vittorio Colao's comments earlier this year that it was looking to consolidate operators. In February Vodafone bought 3 in Australia.

Similarly T-Mobile CFO Timotheus Hoettges admitted in May: "The British market is highly competitive and has comparably low margins. In our view consolidation is a means to take excess capabilities out of the market. Nothing is unthinkable on our side."

So everything balances up neatly - perhaps too neatly on the surface. Look deeper however and why would T-Mobile sell during a recession when the division which still remains profitable? Furthermore T-Mobile has a network sharing deal with 3 while Vodafone is tied in with O2.

There are still a few more wrinkles to be smoothed out in this one methinks...

Link:
via The FT

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Mark Horton said on 29th June 2009

I'm the same, I've been with Vodafone and moved over to T-Mobile a couple of years ago and been every happy with them.. T-Mobile's data plans and Flext tariffs are t... more

Sunny said on 29th June 2009

T-Mobile's new CEO started his first day today...I very much doubt his first order of business would be to sell up to Vodafone.

Give them some time and they wi... more

Ben said on 30th June 2009

I must agree like the other 2 comments. Since I joined T-Mobile at the end of 2006 they have been pretty good. Lovely big data tariffs, good calling plans and pretty good 3/3.56 co... more