T-Mobile UK to merge with 3?

Ben Woods

T-Mobile UK may be forced to close its doors or merge with another network provider in a bid to stay afloat

Published on May 5, 2009

T-Mobile UK's future seems to be lying in the balance today as reports surface that the German-owned network may need to merge or close-up shop to stem its current losses.

It seems that few companies are immune from the pressures of an economic downturn and T-Mobile UK seems to be the latest telecoms company that is being forced into rethinking its strategy for the future.

According to reports online, the Deutsche Telekom owned UK T-Mobile network is reporting losses of €1.8 billion euros and the shareholders have had enough. “The British market is highly competitive and has comparably low margins, in our view consolidation is a means to take excess capabilities out of the market. Nothing is unthinkable on our side”, said Deutsche Telekom's CFO Timotheus Hoettges.

If a merger does go ahead there is probably some logical merit in Mobilechoice.com's suggestion that the most likely partner in the UK will be 3 mobile.