Sunday, September 25, 2005

O2 takeover speculation by Deutsche Telekom increases

Tony Dennis writes in The Inquirer:

THERE'S BEEN renewed speculation that British mobile network operator, O2, is up for grabs. According to a report in The Business, this time Deutsche Telekom is going to go ahead without the Dutch KPN's help.

The INQ believes the whole thing is doomed to failure, however. Why would the regulators agree to a reduction in the number of mobile network operators when the fact that Britain has five operators has made it one of the most competitive markets in the world?

If Deutsche Telekom's own mobile network, T-Mobile, combined with O2 in the UK, the combined network would have about a 40 per cent market share. The INQ's pretty sure that Vodafone would have a thing or two to say about that. Exactly the same applies to Germany where both networks combined would become a major threat to Vodafone.

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