Wednesday, September 29, 2010

T-Mobile + Orange UK Joint Venture Rebrands as "Everything Everywhere"

Everything Everywhere, the newly formed mobile operator following merger of T-Mobile and Orange in the UK, outlined plans increase its network footprint and retail presence and expand in broadband services while cutting staff.

The company aims to achieve cost synergies of £3.5 billion by consolidating operations. The company said these integration plans are ahead of schedule, and that its workforce will be trimmed by about 7.5%, resulting in the loss of about 1,200 jobs. The company aims to achieve a double digit, cash flow CAGR from 2010 to 2014.

Starting October 5th, Orange and T-Mobile customers in the UK will be able to access two national networks at no extra cost, as first phase of multi-network strategy to combine 2G, 3G, 4G, fixed broadband and Wi-Fi.

As of the end of Q2 2010, the combined company had 27,931,000 customers, up 3.4% of a year earlier. Mobile service revenue for the period was £1.56bn and EBITDA was £309m. Both revenues and EBITDA in the quarter were impacted by the introduction last year of lower regulatory caps on mobile termination rate.

Tom Alexander, Chief Executive Officer of Everything Everywhere, said, "Everything Everywhere has made rapid progress in the six months since incorporation, with a strong leadership team in place and a clear strategy based on transforming the market through network leadership. We have identified in excess of £3.5bn of synergies, allowing us to further invest in our networks and building our customer offer for both today and tomorrow. Our aspiration is to give people instant access to everything everywhere and with the launch of national roaming next week -- enabling our customers to access what matters to them over two national networks -- we're well on our way".