Vodafone Could Become the Largest Mobile Broadband Provider in the UK

Posted by admin - July 8th, 2009

If the Financial Times report that appeared on Sunday about Vodafone buying T-Mobile is true, then it could put Vodafone and telecom regulator Ofcom on a collision course.

Vodafone already enjoys a 25% share in the mobile broadband market and if it manages to acquire T-Mobile, it could be a leader in the market by a long way with a share of about 40%. Ofcom, which has successfully managed to avoid any monopolistic situation in the market by ensuring that the share of all the big four players is almost similar, is likely to get upset over the imbalance this deal is bound to create.

Although, neither of the concerned parties has issued any clarification on the news, the rumours of T-Mobile being on sale have been doing the rounds for quite a while now. The FT in its report said that about six months back that the parent company of T-Mobile, Deutsche Telekom, had suggested that it was planning to leave the UK broadband market.

A clear signal that Deutsche Telekom wanted to sell T-mobile appeared at the beginning of this month, when a drop in the value of T-mobile was witnessed on the parent’s books. However, things have progressed significantly since then as Vodafone has joined 3 (three mobile broadband) and Orange as the contenders for T-Mobile.

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