Vodafone could be set to table a takeover bid for T-Mobile’s UK division, it has been reported.
The acquisition would result in the creation of the UK’s largest mobile phone network with a market share of 40 per cent.
Currently, Vodafone commands 25 per cent of the market, placing it second overall, while T-Mobile has 15 per cent. Meanwhile, 3 is the market leader with 27 per cent.
News of developments comes after indications that T-Mobile’s parent company Deutsche Telekom considers that the division has been underperforming recently.
However, according to the Financial Times, the mooted £2.5 billion deal could face opposition from regulatory authorities on the grounds that it could result in a monopoly and disadvantage consumers.
None of the parties named in the stories have yet to confirm or deny the rumours linking them to the potential acquisition.
T-Mobile and Vodafone are the first mobile phone operators to offer Android mobile phones in the UK, in the form of the T-Mobile G1 and the HTC Magic respectively.