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Concerns Voiced Over Orange T-Mobile Merger

Concerns Voiced Over Orange T-Mobile Merger The Office of Fair Trading has submitted a report to the EU Commission, voicing concerns over the forthcoming T-Mobile/Orange merger. The organisation has revealed that 3 has emerged as “an aggressive competitor which has captured more market share from Orange and T-Mobile than its market share would suggest”, according to a report on the Mobile Today website.

The OFT has asked to review the merger, following claims that the two protagonists have been involved in offering concessions. These concessions include a deal with 3 which will see a shared network infrastructure as well as a deal to relinquish a quarter of its 1800MHz spectrum holding.

The OFT is concerned that the merger will undermine the competition, and affect Long Term Evolution (LTE) 4G services in the UK. The submission from OFT said: “On balance, therefore, the OFT's view is that H3G's role as a driver of competition in UK retail mobile telephony appears to be greater than either of the parties (Orange and T-Mobile).”

Arguing the importance of 3’s role in the UK market, the OFT points to churn data “which indicates that H3G (Hutchinson 3G) captures more market share from Orange and T-Mobile than its market share would suggest.”

The organisation went on to add that it felt T-Mobile was displaying behaviour which could be construed as having a “maverick role in the UK telecommunications market.”

Orange and T-Mobile are both keen for there to be no further delays to the proposed merger as the two mobile powerhouses look to consolidate their place in the market among strong competition.


Orange news posted by Romany on 10 March 2010

Stock Tickers: DT FTE

Comments

Reply

Orange / T-Mobile merge

If Orange and T-Mobile merge, I'm leaving Orange and going to Vodafone as Orange are the worst mobile network ever.

Comment posted by Anonymous on 06/04/2010 13:40:16

Reply

Bad

Will we be able to use old SIMs?

Comment posted by Anonymous on 01/06/2010 22:31:57

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