July 21, 2009
The great T-Mobile debate


The potential T-Mobile/Vodafone acquisition has got everybody talking.  

 

While on the face of it, this might be considered an anti-competitive move, it may actually offer a better deal to the consumer.  

 

The UK market is already the most highly competitive in the world and the amount of choice in the market is incredible. 

 

In the first half of June more than 5,000 new “deals” were activated in the UK mobile market – a “deal” is an individual phone with an airtime offer (either prepay or contract).  

 

The merging of the two companies may actually reduce choice and make it easier for the customer to understand the vast array of offers on the market.

 

In the important sub £100 prepay market, Vodafone is currently on average just under £2 cheaper than T-Mobile (like for like) on headline price and almost £3 cheaper when you consider the “Real Deal” (this includes deals that claim to be £19.99 but require you to buy airtime in order to get that price.

 

Like for like in the contract market, Vodafone is around £2 cheaper than T-Mobile currently 

 

If Vodafone buys for the reported price of £3 billion, they will have gained the whole company for less than the price T-Mobile paid for its 3G licence.