T-Mobile and Orange are to merge their UK businesses, creating a mobile phone giant with 28.4 million customers.
source: BBC and softsailor
France Telecom and Deutsche-Telekom announced earlier today that they will merge Orange UK and T-Mobile UK in order to compete against O2 and Vodafone in the British market. Although the partnership doesn’t have a name yet, it will definitely become UK’s largest carrier with 28 million subscribers, and a market share of 37 percent. Before this agreement Orange and T-Mobile were the third, and respectively the fourth largest carriers in the UK with O2 and Vodafone in the first and second place.
The UK market is a very competitive market, and according to France Telecom and Deutsche-Telekom, from now on it will be even more competitive. Both companies expect total savings of €4 billion thanks to this agreement which will provide better indoor and outdoor coverage via 2G and 3G services.
The biggest winners of the deal are the customers as both Orange and T-Mobile will have enough money to develop new technologies, and to provide better subscriptions for their users. The united company will be led by Tom Alexander, CEO of Orange UK, and this may be due to the fact that T-Mobile lost more than 87,000 subscribers in the UK since the end of June. Seems to me that T-Mobile has a lot more to gain than everybody else, but we’ll see what happens and we’re waiting for more details soon.
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