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T-Mobile considers joint venture with Orange

T-Mobile takeover looks inevitable
T-Mobile takeover looks inevitable

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.

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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