Now O2 mulls bid for T-Mobile

 

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Posted on 1 Jul 2009 at 07:54

O2 has become the third British mobile network linked with a potential takeover of rival T-Mobile UK.

O2, which is already the marginal market leader with 27% market share, is reported to be interested in acquiring the T-Mobile business.

Earlier this week it was reported that Vodafone had entered talks with T-Mobile's parent company Deutsche Telekom about a potential takeover.

That was followed yesterday by claims that Orange had joined the race.

Analysts value T-Mobile's UK business at around £3 billion - which is about £1 billion less than the company paid for its 3G licence at the turn of the century.

However, aside from a sizeable user base, T-Mobile has a network-sharing deal with smaller rival, 3, which could prove attractive to potential buyers who are looking to expand their mobile data coverage.

T-Mobile is also the network behind Virgin Mobile, although The Guardian reports that Virgin has a clause in its contract which means it could take its four million customers elsewhere if T-Mobile changes hands.

Author: Barry Collins