O2 is likely to join the bidding war for T-Mobile, the UK mobile operator owned by Deutsche Telekom which has been valued at between EUR3bn (USD4.2bn) and EUR4bn (USD5.6bn). O2 currently owns 27% of the UK market, and may be looking to strengthen its position as the mobile market leader with the acquisition, which would increase O2’s revenues by about 14%.
Competitors Orange and Vodafone have also shown interest in acquiring the network. Vodafone CEO Vittorio Colao has suggested that the company's struggling Turkish arm could contribute up to half the value of a USD3bn deal with T-Mobile.
Telecoms regulator Ofcom is warning that a T-Mobile takeover would lead to reduced competition and a sharp increase in prices for consumers. It says that "The UK [currently] has the most competitive market in the world", but "we would have to balance consumers' interests with investors' interests" if a deal went ahead.
StrategyEye's related categories: Mobile Operators - General
StrategyEye's related companies: Vodafone Group Plc, Orange, O2, Deutsche Telekom, T-Mobile, Ofcom
