T-Mobile And Orange To Join Hands Together
Expect T-mobile to come up with surprises like this. Apparently its planning to start a joint venture with Orange U.K and is in talks with France telecom the parent company of Orange U.K.
But the buzz doing the rounds is that even telecom majors like Telefonica which is parent company of the O2 and Vodafone are trying their hands out on this one. Now that sounds like there are three competitors putting their best foot forward to collaborate with T-mobile.
Some insiders suggest that the market price of T-mobile is about 4 billion euros but the network is worth a whooping 6 billion euros as far as value creation is concerned and again it would just be around 5 billion euros to France telecom.
Going towards market leadership…this inevitable takeover by T-mobile would add an extra of around 15 percent to any network in the U.K. At the moment O2 currently has a 25 percent share and Vodafone and Orange have a market share of 25 percent and 22 percent respectively.
The main point to be noted in this case is that whichever of the three bags the deal would emerge to be the largest network in the U.K. And this could also lead to an improvement in the price competition.
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