Monday, September 7, 2009

Merger Plans for T-Mobile UK and Orange UK

Deutsche Telekom and France Telecom confirmed exclusive negotiations to combine T-Mobile UK and Orange UK in a new 50:50 joint venture company that would create the UK's leading mobile operator. It will have a combined mobile customer base of around 28.4 million, representing approximately 37 percent of UK mobile subscribers. By integrating Orange's broadband activities, the joint venture will also have the capabilities to offer convergent solutions to its customers in the future. The companies estimate that by merging the networks and operations of T-Mobile UK and Orange UK they will be able to generate synergies with a net present value in excess of EUR 4.0 billion (£3.5 billion).

The deal is expected to face a number of regulatory challenges, but the companies said the merger will benefit the consumer through expanded network coverage and enhanced indoor and outdoor network quality for 2G and 3G services. It would also free up money for new network upgrades.


  • Earlier this year, Mobile Broadband Network Limited (MBNL), the 50:50 joint venture formed by 3 UK and T-Mobile UK to integrate and manage their 3G radio access networks (RAN), selected Ericsson to provide managed services to complete the consolidation of their 3G infrastructure. Ericsson will be responsible for the network design and deployment requirements of the consolidation program, which will result in the creation of an integrated 3G network providing close to complete population coverage for 3G services. It will also reduce the number of radio sites from approximately 18,000 sites to 13,000, providing both environmental benefits and significant cost savings