T-Mobile UK and Orange to Form UK’s Largest Mobile Phone Network

Sept. 8, 2009 - PRLog -- In a move that is set to stun the British mobile phone market, T-Mobile UK and Orange have outlined plans to complete a merger that would see the duo become the nation’s biggest mobile network.

A deal has been brokered between Orange owner, France Telecom and T-Mobile UK leader, Deutsche Telekom with the merger expected to engulf 37% of the UK mobile phone market. This will dwarf the coverage of Telefonica-managed O2 who currently enjoy a 27% share of the UK mobile phone network.

The move will be officially signed and sealed in November, with the duo promising to bring substantial benefits to its UK customers. With over 28 million customers using the merged service, it will be imperative that they provide better network quality and improve customer services to cope with demand.

This appears to be a positive move for Deutsche Telekom, who had previously admitted that it was struggling to win over customers in the UK mobile market. Meanwhile, France Telecom will undoubtedly see this as an opportunity to strengthen its British market position without exposing itself to greater debt.

It has been difficult for both Orange (http://www.foneshop.com/orange) and T-Mobile (http://www.foneshop.com/t-mobile) to compete in the market with both O2 and Vodafone enjoying exclusivity for in-demand handsets such as the iPhone (http://www.foneshop.com/apple) and BlackBerry Storm. However, this move should reinforce competition and provide the merger company with a greater capacity for its consumers. Nevertheless, it has been decided that both Orange and T-Mobile brands will remain separate for the first 18 months while re-branding is reviewed.

How the likes of O2 and Vodafone react to these developments remains to be seen. Yet the potential of further mobile network mergers could spell bad news for UK consumers, as companies’ inch ever closer to monopolising the British market.

The return of merger agreements would also suggest that there is light at the end of the financial tunnel, with the corporate world once again in a position to bargain and negotiate.

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