Vodafone Considering T-Mobile Buy-Out
Vodafone with its 25 percent share of UK’s mobile broadband market is reportedly deliberating on a buy-out of the troubled T-Mobile UK. The report which came out in Sunday’s Financial Times cited authentic sources who are close to the decision making process. However, none of the parties has confirmed the rumours.
The report comes after a series of conjectures over T-Mobile’s sale for the past few months. According to the report, Deutsche Telekom, the parent organisation of T-Mobile hinted at selling its mobile broadband division for the UK market six months ago. This followed speculation last month when the parent company dropped the book value of T-Mobile, which many saw as a sign of an upcoming sale. Orange and 3 were seen as the main contenders previously, but it seems Vodafone has now emerged as the key player. If Vodafone clinches the deal, it would have the largest mobile broadband network in the UK with an almost 40 percent market share. With prices of mobile broadband packages and products (see Vodafone pay as you go dongle) being offered at competitive rates to consumers, the concern is how this would be affected.
At the moment there are four operators having almost equal shares of the mobile broadband market in the UK. The acquisition would obviously attract the interest of telecom industry regulators. The deal if successful could disrupt the competitive market structure, a scenario that is likely to upset the main regulatory body, Ofcom.
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