Reports thatVodafone
, the world's largest mobile network operator, is in talks to take
over rivalT-Mobile's
UK operationscould herald the start of a global
consolidation of mobile network operators.
The UK's five mobile network operators are under pressure to
provide a minimum 2Mbps broadband connection across the country
under the
Digital Britain policy.
But the European Commission is squeezing them to reduce tariffs
for roaming and for data calls, narrowing their margins just as it
calls for greater investment in network infrastructure.
If successful, the T-Mobile deal could give Vodafone about 40%
of the UK mobile market by revenue, but it could unglue a
network infrastructure sharing deal it signed in March with
current market leader O2.
Reports in today's Financial Times suggest Vodafone would pay
Deutsche Telekom €3bn to €4bn for T-Mobile UK's assets. But the
deal could run foul of regulators.
Vodafone declined to comment on the report, or to say what
effect it could have on its network sharing deal with O2, whose
first site went live yesterday.
The Vodafone equipment, which was installed in an existing O2
site, will improve network coverage on a busy section of the M4
motorway, and will also allow for a neighbouring site to be removed
soon.
Vodafone said in a statement the whole process from planning to
implementation completed in 11 weeks compared to the usual nine
months for a typical standalone site.
"This is the first of many shared sites that will be delivered
over the coming months. Plans for other sites are now well advanced
and progressing well," it said.
In February, Vodafone and Hutchison Whampoa, the Hong Kong
conglomerate that owns the 3 network in the UK, said it would
combine its Australian mobile businesses.