Reports have reached us that, despite the success of the G1 mobile phone, T-Mobile UK is in big trouble, repprting losses of €1.8bn. In fact, the company is on the verge of going bust or being forced to merge with another company, according to the Marketing Week website.
T-Mobile UK is owned by Deutsche Telekom and has come under increasing pressure via its shareholders to off-set its financial problems. According to its finance chief, Timotheus Hoettges, "The British market is highly competitive and has comparably low margins," he said. "In our view consolidation is a means to take excess capabilities out of the market. Nothing is unthinkable on our side."
Of course, since that statement, speculation has been rife as to who T-Mobile, the fourth largest telecoms company in the UK, would actually merge with and the favourite is 3, who happens to be the fifth largest telecoms company in the UK.
Click to read the Marketing Week story