5/13/2009 11:35:00 AM
Do or die at T-Mobile UK as new managing director joins
T-Mobile UK managing director Richard Moat will join the operator in June amid a £1.6bn write-down, and a steep loss at Deutsche Telekom’s UK arm.
T-Mobile confirmed Moat (pictured) as the replacement for Jim Hyde last week (7 May), which Mobile first revealed in early April.
Meanwhile, Deutsche Telekom reported a loss of £900m between January and March 2009, blaming the UK write-down on a tough economic environment and ‘intense competition’.
T-Mobile UK had a 2.6% fall in customers to 16.7 million in the first quarter of 2009, compared with 17.1 million one year earlier.
Deutsche Telekom is considering putting its ailing UK arm up for sale amid pressure from shareholders, after the operator issued a profits warning last month.
It is likely the new UK management will be given the opportunity to reinvigorate the business before selling it off, according to analysts.
Ovum senior analyst Steven Hartley said: ‘The German business also went through a rough patch and they’ve managed to turn that around, so why would they have to offload the UK operation just because it’s had a couple of quarters of bad performance?’
The company is valued at £3.5bn, with BT the most likely party to consider the acquisition or merger due to pressure on CEO Ian Livingston to build a strong mobile division.
T-Mobile’s revenue has been in freefall over the last 12 months. It dropped 7% between July and September last year, and then 16,000 customers fell away between October and December 2008.