mm02 hits number one spot as T Mobile merger rumours grow

How often do you try to access the Internet from your mobile phone? It takes an age doesn’t it?

In Japan, it’s different. They have i-mode with its 43 million subscribers. But now it looks as if the sun is rising on i-mode in the West, as mmo2 plans the launch of its own i-mode compatible phone. The announcement was made yesterday, with content supplied by the likes of BBC and BSkyB. In fact in all there will be around 80 content suppliers, and services available will include 3 D games, online shopping and banking.

Meanwhile, it’s emerged that the former BT subsidiary is now number one in the UK. According to research from Continental Research, 02 now has 24.1% of the UK market, just ahead of Orange, the previous number one, with 23.8%. Vodafone is third with 22.7%.

But all this could be about to change radically if the latest rumours are to be believed.

According to the Business Paper, Deutsche Telekom, the company which owns T-Mobile is planning an £18bn takeover of the British mobile phone operator.

O2, of course is also a big player in Germany, and while a united T-Mobile and 02 would control around 40% of the UK industry, the German market share would be nearer 50%. So the smart money seems to be riding on the German company selling 02 Germany, and getting a large chunk of the purchase price back that way. It could even fund the entire cash element of its bid by selling 02 Germany, and using shares for the remainder of the deal.

But yesterday, Deutsche Telekom denied any plans to make a swoop for 02. “We have no interest.” Deutsche Telekom Chief Financial Officer Karl-Gerhard Eick said: “The topic for us is closed.”

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