T-Mobile considers joint venture with Orange

Vodafone and O2 throw offers into the ring too

Deutsche Telekom, owners of T-Mobile UK, is reportedly talking to France Telecom, parent company of Orange UK, about a joint venture.

The Financial Times is reporting that the two companies are in negotiations, but Vodafone and Telefonica (parent company to O2) have also made informal £4 billion bids.

Some research notes have suggested T-Mobile UK is only worth around €4 billion (£3.5 billion), but reckon the network would be worth around €6 billion (£5.25 billion) in value creation, where it would only be worth €5 billion (£4.8 billion) to France Telecom.

Market leader

A T-Mobile takeover (which seems inevitable) would give an extra 15 per cent subscriber market share to any network in the UK, with O2 currently roughly on 27 per cent share, Vodafone on 25 per cent and Orange on 22 per cent.

Any of them taking over ailing T-Mobile would result in the largest network in the UK, hopefully improving price competition even further.

Via The FT

ABOUT THE AUTHOR

Phones and Tablets Editor

Gareth (Twitter, Google+) has been part of the mobile phone industry from the era of the brick to the tiny device in the pocket... and now watching them grow back up to behemothic proportions once more. He's spent five years dissecting all the top phones in the world as TechRadar's Phones and Tablets Editor, and still can't resist answering the dreaded question - "which new phone should I get?" - with 15 choices.