It’s just been announced that UK network Operators T-Mobile and Orange are set to merge into one company.
This will make the new combined network operator the largest in the UK, with 37% of the mobile phone market, knocking the current number one, o2, off the top spot.
Although the merger will mean less competition in the UK, there are a number of benefits. By pooling resources, it will result in stronger network coverage as rationalisation of the cellbases takes place, Orange will bring their Broadband offering to the mix, and High Street stores will be rationalised. The company will also be able to make cost savings by removing duplicated cellbases and stores, and consolidating departments. This will doubtless mean job cuts.
The merger won’t happen for at least 18 months, and is subject to due diligence checks and UK regulator approval. No new name for the super-network has yet been proposed.