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T-Mobile and Orange to merge
Tuesday 08 September 2009 11:19:09 by John Hunt

T-Mobile and Orange have announced they plan to merge their UK businesses which will create the largest mobile phone operator in the UK with 37% of the market or around 28.4 million customers. Deutsche Telekom and France Telecom, the owners of T-Mobile and Orange respectively will take a 50:50 share in the combined company. The next largest mobile providers are O2 with a 27% share and Vodafone at 25%. On Sunday Vodafone and O2 were reported to have put forward bids of around £3.5bn to purchase T-Mobile, however this would likely have undervalued the business.

The merger will reduce costs as the network can be rationalised with masts decommissioned where duplicate coverage is available and grown to provide expanded coverage. Retail outlets can also be consolidated to ensure the new company streamlines it's operations. Integration of the business could cost between £600m and £800m but savings of £3.5bn are expected over time. 12,500 people are employed by Orange and 6,500 by T-Mobile in the UK- It would be expected that cost savings would also be achieved by the merger and slimming of this. The companies also mention they will be able to invest further into newer technologies helping to provider better coverage and faster speeds for services such as mobile broadband.

Both brands will remain separate for the first 18 months whilst a branding review is performed. Tom Alexander, currently CEO of Orange UK will head the new company as CEO whilst Richard Moat, CEO of T-Mobile UK will take the COO role. The merger will have to be vetted by the Competition Commission here in the UK and Europe to ensure the deal is good for the market. If all goes to plan, the paperwork could be signed by the end of October.

Full details can be read in the joint press release.

Comments

Posted by danman7_200 over 7 years ago
As Tmobile are already in the process of sharing their UTMS infrastructure with Three, does this effectively mean that three operators will be sharing the same physical UTMS network now?
Posted by alwall over 7 years ago
The press release makes interesting reading.
I'm sure that "opex-based synergies" is a well understood expression!?
Posted by Pigmaster over 7 years ago
Don't you just love it. Sod's Law!!

After leaving Orange (3 years ago) because of it's crap level of service and expensive prices I move to T-Mobile for phone and also mobile broadband. Been absolutely fantastic and now we are sure to see the failings as Staff Numbers will fall, mast being deactivated therefore putting pressure on the existing masts and backhaul. IT will end in tears, not for the biz type but customers
Posted by Pigmaster over 7 years ago
So why is it that then the crap company buys the decent company the level of service always drops and quality of service drops. Jusy look at past indicators of Pipex being brought by Tiscali showed what a crap company can do with a decent telecom network, now Pipex is no more and Tiscali has become the new Italian word for CRAP
Posted by Pigmaster over 7 years ago
Only 24hrs after my last posting here and he is the proof how Orange are crap as most of the network goes belly up. And what has Orange got to say. One spokesperson has said "Only a few users are effected" and from a different spokesperson "In a separate statement, sent to complaining users, the company admits that half of its mobile users can't get internet access at the moment."

What hope have T-mobile users got from this bumbling company.

Report take from http://www.theregister.co.uk/2009/09/10/orange_down/
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