The Sunday Financial Times has reported that Vodafone has been mulling a move to bid on T-Mobile, which has been struggling significantly lately.
It is noteworthy that along with Vodafone, 3 and Orange are also in the fray to acquire T-Mobile. The report, however, did not quote any response from either Vodafone or T-Mobile.
The FT also reports that the talks of offloading T-Mobile have been in the air for a few months now. The FT continues further by saying that the sale of T-Mobile was first suggested almost six month ago when it was said that Deutsche Telekom, the parent company of T-Mobile was pondering a move of opting out of the UK mobile broadband market as it did not want to support the struggling division anymore.
Vodafone will emerge as the largest player in the mobile broadband market in the UK if it manages to clinch the deal. This is something that is not going to please the market regulator Ofcom - click for mobile broadband best offers.
Ofcom has, so far managed to keep the share of all the big four players to reasonable levels but with this potential deal, Vodafone, which already has a 25% share of the market, would become huge with a 40% share. This will create an imbalance in the market and will be worrisome for Ofcom.
