Vodafone is planning to buy T-Mobile UK

3 Sep 2009

In a move that would have a dramatic impact on the UK and European mobile phone market it has emerged that Vodafone is considering an offer to buy T-Mobile.

Vodafone, which is the world’s largest mobile operator by revenue, is studying an opportunity to acquire T-Mobile UK.

T-Mobile UK is understood to have a market value of up to €4bn but as a company has been underperforming in the face of tough competition from players like Telefonica O2, Vodafone and Orange.

The T-Mobile UK operation’s revenues fell 21pc recently to €856m.

The company’s owners Deutsche Telekom has appointed JP Morgan to advise it on the matter.

Any move by Vodafone to buy T-Mobile UK would have to be cleared by UK and EU regulators.

Such an acquisition would give Vodafone a 40pc share of the lucrative UK mobile market, compared with its current market share of 25pc.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years