T-Mobile and 3 set to merge in the UK?

T-Mobile UK is likely to be sold according to reports that parent company Deutsche Telekom is looking to rid itself of the under-performing arm.

CFO Timotheus Hoettges reportedly said at a recent shareholder meeting that the UK branch would have to merge with a rival or go bust, after poor results in recent times despite having the exclusive on the first Android phone, the T-Mobile G1.

According to Marketing Week, Hoettges said: "The British market is highly competitive and has comparably low margins."

"In our view consolidation is a means to take excess capabilities out of the market. Nothing is unthinkable on our side."

Who wants T-Mobile?

The options to take on T-Mobile's business in the UK are various, although early money is being placed on 3 as it already has a network share deal with the pink network.

But reports that it is also up for sale might put the kibosh on that theory, although a merger might work for both parties.

Orange could also be a viable alternative, as it has seen its UK market share slipping in recent years and would certainly have the cash to catch up on rivals O2 and Vodafone.

However, with BT reportedly looking to re-enter the mobile market and other international networks looking to get involved in the competitive UK market, it's far too early to tell whether we're going to be seeing T-Mobile stores up and down the country in a few years time.

Via Marketing Week