Orange and T Mobiles Massive Merger Confirmed

Orange and T Mobiles Massive Merger Confirmed

Orange and T-Mobile announced a merger deal to create the UKs largest mobile phone operator. iPhone deal to follow?

Orange and T-Mobile have merged to form a new UK mobile phone giant, taking 37% of the mobile market to form the UK’s largest mobile phone company. The new mobile company will have over 30 million users, leapfrogging current market leaders Vodafone and O2.

The merger is likely to see the end of the weaker T-Mobile brand as it integrates into the stronger Orange model to create a new superpower in UK mobiles. The move has sent rival companies reeling, prompting speculation about a counter-merge between Vodafone and O2 to counter the threat of a reinforced, stronger Orange.

France Telecom (the owner of Orange) and Deutsche Telekom UK (the owner of T-Mobile) confirmed the deal today which will create a UK mobile force with a turnover of nearly ?10 billion. The Orange workforce comprises 12,500 employees whereas T-Mobile employ 6,500 staff. Job cuts are expected as duplicated roles between the two companies are axed.

According to the jointly released press statement, the merger will save the new company as much as ?4 billion in new synergies. The news comes 10 days after Orange acquired a 100 per cent stake in UK online advertising company Unanimis in a deal worth £15 million.

Speaking of the merger, France Telecom CFO, Gervais Pellissier said: “By combining our operations in the UK, we anticipate the long-awaited consolidation in one of Europe’s most competitive markets, thereby creating a well positioned player.”

Mr Pellissier said that the merger would “reinforce fair competition” creating a number of benefits for customers including better service and network coverage across the UK. With O2 set to lose iPhone exclusivity in the UK in just four weeks time (9 October), the new and improved Orange is sure to pounce on the opportunity to sell Apple’s hot mobile.


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6 Responses to Orange and T Mobiles Massive Merger Confirmed

  1. Anonymous says:

    Vodafone must be hyperventilating. They need a little bit of O2 :)

  2. Anonymous says:

    This sucks, I just switched from Orange to T Mobile, wanted to get away from that f*****g company :(

  3. Anonymous says:

    I’ve always been an Orange customer, so I don’t care so long as they keep doing the free cinema tickets on Wednesdays.

  4. Anonymous says:

    I doubt very much that Vodafone will merge with O2. We both have our own unique share in the market and we’re both very, very strong companies.

    Stamp this out before rumours run wild.

  5. Megan Eirlys Davies says:

    At present with Orange I pay 15p a minute for my calls I’m on the “Raccoon” payment. Will this alter once the merger takes place?

    Megan

  6. mikron says:

    Tickets to the movie… this is not the main criterion for selecting the company. I recently became cause for concern the quality of their products.

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