5 Reasons Why T-Mobile Should Merge With 3

(3) Already working together

Both companies are already working together, having created the Mobile Broadband Network Ltd back in December 2007, a network collaboration joint-venture between the two that aims to create Europe’s largest HSDPA network. Both companies were looking at the time to combine their 3G base stations to save up to £2 billion by 2017. The fact that 3 has apparently ditched both Orange and O2 as its backup networks could be the clearest sign that something is about to happen.

(4) 3 has the money

3 is the mobile arm of Hutchison Whampoa which has a turnover of $45 billion. While an outright buyout would be too big, even for a company the size of Hutchison Whampoa Limited (HWL), a merger is possible. In the past, Hutchinson Whampoa chose to go down the route of simple majority rather than a more expensive buyout. Hutchison Whampoa for example owns 50.003% of HTIL (Hutchison Telecommunications International Limited), which gives it the majority, without the outlay.

(5) It is good for the rest of us

A world without T-Mobile and shortly after without 3 would almost certainly mean higher prices for the rest of us as the remaining three mobile networks will enjoy a virtual monopoly by making the cost of entry too high for any other player. At least 2 other players, Virgin Mobile (which incidentally has more customers than 3) and Ikea would be affected by any acquisition plans.