Rumours of T-Mobile sale abound

Tue 05 May 2009 4 Comments

Rumours abound in the press today of a sale or merger being on the cards for T-Mobile. Reports, which seem to have originated with the Financial Times late last week, suggest that Deutsche Telekom, which owns T-Mobile UK, is under pressure from its shareholders, which include the German government, to make a quick decision on whether to offload the underperforming division.

T-Mobile UK is the one of the smallest of the mobile phone and mobile broadband providers in the UK - only 3 is smaller - in what is a fiercely competitive market-place, and has been reporting less than spectacular profits recently, resulting in Deutsche Telekom issuing a profit warning last month. Now it is suggested by the FT's sources, listed only as 'people familiar with the shareholders', that its parent group is coming under pressure to sell, or alternatively to merge with another of the UK's mobile providers - with speculation listing 3 and Orange as likely options.

No more T-Mobile?

The FT's sources also suggest that the idea of Deutsche Telekom getting out of the UK mobile market was mooted six months ago, but the decision was held at that stage. Now, it seems, the decision has become critical and must be made as soon as possible.   Last month René Obermann, Telekom chief executive, said that he would appoint new management to put the UK business back on an even keel, but he did not exclude any strategic options beyond that. So far, however, T-Mobile has yet to comment.

 

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Comments

  • neutral

    by cdn_eh at 11:10 on 6 May 2009Report abuse

    What would happen then if T-Mobile were to be bought over by 3 or Orange? Would we then be using their towers for service as well as T-Mobile? It's all very confusing, but a shame considering T-Mobile were really onto something when the introduced Flext in 2006 into the fixed minute/text market. I was one of the first customers of it (and still am) and I find that I'd not be able to return to the rigidity of other tarrifs.

  • neutral

    by slider at 16:47 on 6 May 2009Report abuse

    It would be a crying shame if t mobile were to be swallowed up by Orange in particular, their customer service is in my opinion superb and as previously stated the Flext tariffs are brilliant. Orange would totally ruin the customer care that is currently provided, (I hate orange) 3 mobile have been reasonably helpful but have only 6 months experience thus far.

  • neutral

    by Michael at 00:32 on 8 May 2009Report abuse

    Richard Moat is a brilliant manager and was obviously brought in to manage the business, not disassemble it.

  • neutral

    by stevethomas@uwclub.net at 16:51 on 2 Jun 2009Report abuse

    I get a T-Mobile service through the Utility Warehouse, which, oddly, is cheaper than T-Mobile offers! Customer service through UW has been fantastic. I guess any new suitor will have to abide by existing contracts.

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