Vodafone may bid for T-Mobile

Mobile phone operator Vodafone is considering making a bid to buy T-Mobile UK, the Financial Times (FT) reported today. Vodafone, which is the worldÔÇÖs largest mobile phone operator by revenue, is said to be interested in making an offer for T-Mobile UK, or setting up a joint venture. T-Mobile has an estimated value of Ôé¼3 billion to Ôé¼4 billion (┬ú2.5 billion to ┬ú3.4 billion). If Vodafone did buy T-Mobile, the company would become the UKÔÇÖs largest mobile operator, claiming a 40 per cent market share.  Currently, Spanish-owned O2 is the UKÔÇÖs largest operator, with a market share of 27 per cent, followed by Vodafone, which has 25 per cent. T-Mobile UK, which is owned by Deutsche Telekom, has 15 per cent. There are doubts among analysts that regulators would allow a deal that would result in such a large market share going to one company to proceed. Some believe, however, that competition watchdogs may follow the example of countries such as France, Spain and Italy, where there are fewer dominant players in the market. In February, Vodafone and Hong Kong-based firm Hutchison Whampoa, which also owns the mobile operator 3, announced plans to combine their Australian operations. Deutsche Telekom is thought to want out of the congested British market, due to the fierce competition and low margins.  The FT reported that both Vodafone and T-Mobile had declined to comment. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *