Deutsche Telekom eyes up UK mobile market

NEWS Deutsche Telekom (DT) was unable to comment today on reports that it has set its sights on One 2 One, the UK's smallest mobile phone operator. The media rumours come hot on the heels of news that the German telecoms giant is in talks with Telecom Italia over a merger that would create a joint company valued at over £100bn. DT announced a release of shares last week, which it claimed would fund international expansion. One 2 One is jointly owned by Cable & Wireless (C&W) and the MediaOne Group, which last month announced that it is looking at 'strategic alternatives' for the mobile phone service provider. One 2 One's customer base has grown by 90 per cent in the last two years and now numbers more than two million. C&W told Silicon.com the rumours of a DT take over were pure speculation. Robin Duke-Woolley, senior consultant for Schema, said a takeover "would follow naturally from MediaOne's position following its recent merger with Comcast, which has led it to reassess its assets and interests. One2One would be Deutsche Telekom's only way in to the UK mobile phone market".