Market regulators might be in for a tough time in maintaining fair competition if Vodafone takes over T-Mobile UK. At present Vodafone has a 25 per cent share in the market and it is one of the four companies that are enjoying comfortable and equal positions in the mobile broadband sector. However, this deal will get Vodafone an additional 15 per cent share, which would harm competition and would thus upset Ofcom.
The rumours were reported by Sunday’s Financial Times where it was said that Vodafone was considering a buy-out of T- Mobile UK after its parent company had expressed the desire to let it go. Deutsche Telekom had last month dropped T-Mobile’s value in its books, which appeared to be a sign of an impending sale of the troubled division. It was also reported by FT six moths ago that Deutsche Telekom was showing disinterest in continuing with T-Mobile.
Previously, it was thought that 3 and Orange would emerge as the most likely candidates to fight over T-Mobile. However, apparently, Vodafone is looking to expand its reach and has entered into negotiations already - click for info on T-Mobile Broadband.
Although there were no comments regarding the rumours from either Vodafone or T-Mobile, regulators would be evaluating as to what happens to the market forces if the deal does become a reality.











