T-Mobile goodwill cut by €1.5bn

O2 shows the way...
Written by Jo Best, Contributor on

O2 shows the way...

Deutsche Telekom has announced it is writing down the value of the UK arm of its T-Mobile business by €1.5bn.

According to Deutsche Telekom, the decrease in the company's goodwill was prompted by the recent acquisition of O2 by Spain's Telefonica.

It said: "The takeover of the mobile communications company O2 by Telefonica generated an indicator of the market price of T-Mobile UK for the impairment test."

The news comes just days after Vodafone announced it was cutting up to £28bn from the goodwill of its operations in Europe and Germany.

T-Mobile announced the writedown as part of its fourth quarter results. The operator increased customer numbers by nine per cent.

However, T-Mobile saw UK revenue decrease, year on year – from €4.3bn in 2004 to €4.2bn in 2005 - which Deutsche Telekom attributed to a "tough market".

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