operations as they formed a joint venture to combine their 3G access networks, saving around £2bn over 10 years.
However, T-Mobile UK chief executive Jim Hyde said pooling networks with 3 was a way of consolidating but did not have "anything to do" with a fully-fledged merger.
3 UK chief executive Kevin Russell added: ''I don't see mergers happening between big telecoms players… the sexy stuff is equity consolidation but it is unrealistic in this marketplace."
Analysts say 3, with just 3m customers, is sub-scale in Britain, raising expectations that its Hong Kong parent Hutchison Whampoa could look to sell the business. The loss-making UK group abandoned a market listing last year.
But T-Mobile UK and 3 UK said they were focusing on redeploying their networks to ensure that one set of 3G mobile phone masts, as well as the infrastructure that connects to each operator's separate core network, would reach 98pc of the population by 2009.
The 50:50 joint venture for a near-national upgraded 3G network will be manned by a small team of staff with most of the work already outsourced to equipment suppliers. No job losses are expected at T-Mobile or 3.
The deal has not been approved by Ofcom, but Mr Hyde said the companies had been in continual dialogue with the telecoms regulator over the past year.
The companies said they were open to other parties joining their Mobile Broadband Network Ltd venture - on the right commercial terms - which is due to run until the end of 2031.
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