Another possibility for Deutsche Telekom’s struggling UK unit. The FT.com reports that T-Mobile UK, Britain’s fourth largest carrier, could attempt to merge with the country’s third largest network Orange. According to analysts, such a move would be unlikely to be vetoed by the UK’s competition authorities, even though such a combination would give the merged companies 40 percent of all revenues paid by British mobile users.

SEE ALSO: Deutsche Telekom Stock Falls On Profit Warning

Last week it was reported that Deutsche Telekom (NYSE: DT) was under pressure from its shareholders the German government and private equity group Blackstone to quickly figure out if it would sell the troubled UK carrier. The shareholders were said to be growing impatient after Deutsche Telekom surprised the market by issuing a profit warning, partly based on the poor performance of its UK unit. The other alternative, say analysts, would be for Deutsche Telekom to keep its British operations and merge them with the UK’s smallest network, 3, owned by Hong Kong conglomerate Hutchison Whampoa.

Analysts expect a buyer for T-Mobile UK to most likely to come from a company that already has operations in Britain, as the overcrowded market is ripe for consolidation. In a country where five carriers serve a population of 60 million, British networks turn out some of the lowest profit margins for their owners.