Orange T-Mobile Merger, UK’s Largest Carrier

September 8, 2009, By Atul Roach

orange-t-mobile

France Telecom and Deutsche-Telekom the parent companies for Orange UK and T-Mobile UK have announced the merger of both companies and the unnamed joint-venture will now have a collective customer base of 28.4 million people. From a market perspective, this would mean that the market share of 37% will solely belong to this collective carrier making it the biggest in the United Kingdom.

The estimated cost of the merger is somewhere between 400 to 600 million pounds and by 2014, both companies will start saving half a billion pounds per year.

The advantage would be drawn from the fact that there would be no need of duplicate base stations and retail outlets. Also the efficiency in operational staff and customer support is bound to benefit from the merger.

UK is the second biggest market in the world and therefore it is very important to concentrate on the developments here. The fate of Virgin Mobile also hangs in the balance as it uses the T-Mobile Network.

Orange chief executive Tom Alexander will be chief executive of the new company, while T-Mobile UK chief executive Richard Moat, will serve as the chief operating officer of the Joint Venture.[via: Cnet]

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