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Orange & T-Mobile Merger Finalised

Gordon Kelly

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It's happening folks...

Deutsche Telekom and France Telecom late last week confirmed they have signed the final agreement to combine their UK operations, T-Mobile and Orange, into a 50:50 joint venture company. Due diligence has been completed and the terms of the transaction are now binding with formal completion expected in the first half of 2010 (video from the day of the original announcement).

"This joint venture is based on the full commitment of Deutsche Telekom and France Telecom to a long term partnership," said Deutsche Telekom CFO Timotheus Höttges. "The negotiations were conducted in a fair way on both sides and I am certain that this spirit of professionalism and partnership will shape the future of our joint venture. It will set new standards as the number one in the UK mobile market."

'Standards' is a word rival networks would debate, but what looks certain is we will have a new giant upon our hands with 28.4m customers and 37 per cent UK market share. Current leaders Vodafone and O2 have 24.7 per cent and 27.7 per cent respectively with 3 backing up the rear at eight per cent. Of course the deal can still be stopped should the Competition Commission decide to kick up a fuss, but given T-Mobile's May declaration that it wanted to merge or sell I suspect little will stand in its way.

How will O2 and Vodafone respond? My guess is by fighting over 3...

Link:

Press Release

lifethroughalens

November 9, 2009, 6:02 am

So will there be any immediate tangible benefits to the public, and exactly when will T-Mobile and Orange flick the switch on allowing customers to use each other's base stations and data networks?





Or will they start 'streamlining' the numbers of towers in overlap areas so that in actual fact the contention ratios stay the same or get worse and the whole thing heads south?!

Max

November 9, 2009, 6:16 pm

Oh dear, this is definitely not a good move for consumers. I really hope the UK competition commission steps in a blocks a merger. Obviously the EUCC won't do anything to upset the French or Germans but the UKCC should stand up for UK consumers at least. If Voda end up buying 3 (which is a distinct possibility) it leaves the UK mobile networks split in three rather than 5, that will have a massive knock on effect to contract pricing and mobile subsidies and neither will be good for the consumer.





Other countries is which there are less than four main players have shown time and again that competition is lacking and prices are too high. If anything the UKCC should be leading the break up of Voda and O2 rather than the consolidation of the carriers.

DavidDB

November 9, 2009, 8:31 pm

Any hope of a DEAF TARIFF for the 9 million deaf and hard of hearing in the UK who are sick to the teeth of paying out for "talk-time" every month they don't want has further receded.


All hopes are on 3 or 02 to make the move and grab this huge segment of the market with a tasty Android....

bobsta

November 9, 2009, 11:37 pm

These two companies are a perfect match - both suffer from poor coverage and dreadful customer service having being a customer of both networks.

Gordon394

November 10, 2009, 12:13 am

@bobsta - not according to Ofcom... http://www.trustedreviews.com/...

lifethroughalens

November 10, 2009, 5:36 pm

Does anyone at TR's know any info about when this techno mash up will actually happen? (as in my first post) Or is this at the 'sometime in the future' phase?

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