Deutsche Telekom is in early talks with three companies to sell off its UK mobile business T-Mobile.

The future of Britain's fourth placed mobile firm has been in doubt for some time. In the summer advisers JP Morgan were appointed to find buyers for the firm.

The source also reckoned that the slight improvement in the economy meant that the price for T-Mobile had also risen from about £3bn in July to nearer £4bn now. Which is still a fraction of what the firm paid for its 3G license.

A deal is unlikely to be hammered out before October at the very earliest. Any cash raised would help Deutsche Telekom strengthen US business.

For a look at what a sale would mean in terms of radio spectrum and networks there's an analysis piece here ®

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