Tuesday, June 30, 2009

Vodafone and T-Mobile eye UK merger

Vodafone is considering an offer to buy T-Mobile UK in a move that would transform the UK mobile market. A partnership between the two operators would see the merged company become the UK's largest mobile player by some distance with an estimated 45 percent market share, which could see a deal being blocked by regulators. However, the FT suggests that the merger would ease pricing and margin pressures in the fiercely competitive UK market and notes that the UK is the only major European market with five mobile operators.
"The most likely scenario would be a joint-venture between Vodafone UK and T-Mobile UK, the way Vodafone has recently done it in Australia with Hutchison," commented Wireless Intelligence analyst Joss Gillet.
According to Wireless Intelligence data for 1Q09, the UK market is led by Telefonica's O2 with a 26.7 percent share, followed by Vodafone (24.4 percent), T-Mobile (21.8 percent), Orange (20.7 percent) and 3 (6.5 percent).
Source: GSMA Mobile Business Briefing

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