T-Mobile UK update: Telefónica also interested in mobile operator buyout

For a company that’s “officially” not on sale, there are a lot of people interested in buying T-Mobile UK. Despite Deutsche Telekoms protestations that it had no intention of selling, Vodafone was reported to considering a purchase. And now it’s rumoured that Spanish giant Telefonica is considering a bid.

According the Financial Times, Telefonica is seriously considering the case for buying T-Mobile. Why now? Because it has been reported that if Vodafone do merge with T-Mobile in the UK, the new company would have the largest market share in England by a long way. And that wouldn’t be good for Telefonicas UK operation, O2.

O2 is currently the lead mobile operator in the UK with a 27% market share. A joint Vodafone/T-Mobile operation would have 40%.

Unsurprisingly, neither Telefónica nor T-Mobile have anything to say about this. It was the good old, familiar “people familiar with the situation” who blew the whistle.

What we think?

Separately from the Telefonica deal, the Financial Times also reports that France Telecom is looking at a joint-venture with T-Mobile and Orange. France Telecom has denied those rumours. As we pointed out when the Vodafone story broke, it does look unlikely that a full purchase will occur. We’ll probably be looking at some kind of joint-venture. I just wonder how many more companies are going to get involved! I’m kind of waiting for NTT DoCoMo to throw their hat into the ring. We could have T-NTT DoCoMobile.