GermanyÔÇÖs Deutsche Telekom is in talks with UK-based Vodafone, France Telecom and SpainÔÇÖs Telefonica about selling its UK unit, T-Mobile, the UKÔÇÖs Financial Times reported.
Although talks are in the early stages, industry analysts have predicted that the unit could fetch as much as Ôé¼4 billion.
A merger between T-Mobile and France TelecomÔÇÖs Orange UK is one idea understood to be under discussion.
T-Mobile currently holds 14.9 per cent of the UK market share. TelefonicaÔÇÖs O2 holds 27.7 per cent, Vodafone 24.7 per cent and Orange 21.5 per cent.
Long an attractive takeover prospect, T-Mobile began to lose customers last year as it failed to offer the same handsets and new deals being offered by its rivals.
An agreement on the sale is not expected to be reached until the fourth quarter of this year at the earliest.
Experts this summer valued T-Mobile at between Ôé¼3 billion and Ôé¼4 billion.
Selling the UK unit would free the company up to concentrate on expanding the companyÔÇÖs growth and market share in the US.
Yesterday, T-Mobile UK announced it will be launching the new Google smartphone, the T-Mobile Pulse, which is due to go on sale in the UK in October. It will be selling it for the first time on a pay-as-you-go basis, to raise its mass market appeal.
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