Orange and T-Mobile Merger Threatened by OFT Enquiry
UK Business watchdog the Office of Fair Trading (OFT) is intent on investigating the merger deal between giant mobile phone companies Orange and T-Mobile, owned by France Telecom and Deutsche Telekom, respectively.
The reason for the watchdog’s concern is that the merger could create a monopoly in the UK mobile phone market and would affect thousands of jobs in Bristol, where Orange is based. This follows warnings from both mobile phone companies of impending cuts in a combined workforce throughout the UK of 19,000 employees.
Orange has six offices in Bristol where it employs 2,200 staff. However, last night the company announced that it has decided to move 300 jobs to other UK sites.
Both mobile phone companies would cut costs by over £445 million a year from 2014 if the merger does go ahead. They would definitely cut jobs in Orange’s administrative and technical departments in Aztec West and Almondsbury in Bristol, according to thisisbristol.co.uk.
Many of the companies’ stores which are spread across the region would be closed, resulting in further job losses. However, the OFT has to obtain special permission from the European Commission (EC) before it is able to examine the proposed merger.
As the owners of both mobile phone operators are based in Europe and conduct most of their business activities outside the UK, the EC is to hold its own enquiry.
However, the OFT considers a separate UK enquiry is necessary, concerning the merger’s impact in the UK. If the merger does go ahead it would result in a telecoms giant with 28.4 million mobile phone customers and a 37 per cent share of the mobile market.
Orange news posted by Marilyn on 05 February 2010
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Mobile phone, Orange, T-Mobile, giant mobile merger
http://www.thisisbristol.co.uk/homepage/Watchdog-block-mobile-giants-merger-threatens-thousands-Bristol-jobs/article-1804899-detail/article.html
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