Rumours are circulating that Vodafone is considering a takeover bid for T-Mobile.
If the move were to go ahead, it would mean that the merged company would become the UK’s biggest carrier, with a market share of 40%. The takeover bid follows several years of disappointing performance for T-Mobile, which is currently worth an estimated €3-4bn.
However, even if the transaction does go ahead, UK telecoms regulators may well block it under the grounds that it will give the company too much power in the market. That said, similar situations exist elsewhere in Europe- where an operator owns 40% or more of the market share.
At present, the UK’s largest operator is O2, with a market share of 27%. However, Vodafone is not far behind, with 25%. So, if the deal were to go ahead, it could have huge repercussions for the whole mobile market.