Deutsche Telekom mulling UK exit?

16 Feb 2012

German telecoms giant Deutsche Telekom (DT) is rumoured to be considering an exit from the UK wireless sector, with Bloomberg claiming that it is evaluating its options in the country as it looks to raise funds following the failed sell-off of its US operations. According to the news outlet, which cites people with knowledge of the matter, DT is in the ‘early stages’ of deciding whether to divest its half of Everything Everywhere, the 50/50 joint venture formed between its British mobile arm T-Mobile UK and the local wireless unit of France Telecom, Orange UK. It is understood, however, that any final decision regarding its strategy for its UK operations is unlikely to be taken before later in 2012, with the German company first looking to improve operational performance. Should DT ultimately choose to exit the country, suggested options include the sale of its share of Everything Everywhere to France Telecom, while it could instead seek a third-party buyer for its part of the joint venture. The report, meanwhile, cites DT spokesman Andreas Fuchs as declining to comment, other than to state that his company has a ‘long-term commitment’ to the UK market and that its venture is ‘competing successfully’.

United Kingdom, Deutsche Telekom (DT), EE