One reason why O2 suddenly not doing subisdy, handset selection - T-mobile for sale.

iceburn

One theory why O2 lately have being doing what they have, ie not much selection of handset, no real discount for rentention to play with etc etc.. Is due to T-Mobile up for sale

http://www.theregister.co.uk/2009/07/03/t_mobile_vodafone/

interesting read and I know it say vodafone would be a good match but also when you think about it maybe a good reason why O2 will want to take it, so Vodafone dont have that excellent match or push the price up for them. Also as it mention about removing the 900mhz due to the increase fees.

fiish

I think any move by O2 to buy out T-mobile would come under the heaviest of scrutiny by Ofcom - they already have the biggest market share and taking over T would give them significant pricing power in the mobile phones market, which is likely to result in bigger price increases overall than if one of the smaller operators made the buyout.

iceburn

I think that will apply if even Vodafone buy them out... as it say three UK does not have the money but I think three parent company in hong kong does so maybe they will buy it out...

kingofherts

The reason O2 are not subsidising handsets is that they have ploughed their entire budget into the iphone, hence why when you go into an O2 store you will not really be offered anything else

baldude

O2 cant afford to split, if they acquire T-mobile.
Current o2 market share is 26%....and EU Regulations does not allow any company to own a market share of greater than 40% as it hampers the market competition. Even if o2 acquired T-mobile and if total market share is greater than 40% then EU will ask O2 to split into two companies which o2 does not want to do.
May be as an alternative, o2 is trying to reduce its market share to be able to acquire T-mobile, and when that happen the combined tmobile and o2 market share does not exceed 40%....its just a hypothesis...

Even vodafone cant acquire as the combined voda and tmobile market share would be greater or close to the 40% which might require to split....

iceburn

they might be spending alot on the iphone in both adverts/admin and money but not all of it cause looking at the line rental + handset charges for the Iphone it still not actually that cheap. Granted it is cheaper compare to Iphone 2G but than that was cause Apple barred networks from subisdy

iceburn

actually baldude got a point there. Just say for agruement sake O2 is 26% and T-Mobile is 18%. If recent changes etc make O2 lose 6% of its customer base. So now it is below the 40% mark. Now once they merge, after couple years they go into customer attraction drive and get those 6% customers back, would they still need to spilt than? ie if any company ever reach that 40% either by merging or by one own growth will result in them having to spilt?