There will be a big happening this year from two mobile giants in the UK. Orange and T-Mobile is about to merge to create U.K.’s largest mobile carrier. The joint venture will have a 28.4 million customers or about 37 percent of U.K.’s market.
According to sources the merger would cost at around US$655 million, but it is expected to save around US$700 million per year by 2014. The new company will have to remove the duplicated base stations as well as retail outlets thereby reducing operational costs. T-Mobile lost 100,000 customers last year and Orange sales in the first half were down 2.6 percent. With this merger the company will have a strong market in the future.
Deutsche Telekom is the parent company of T-Mobile while France Telcom is the parent market of Orange. The deal is expected to push through since U.K. mobile market is regarded as highly competitive and no regulatory problems is anticipated.
Related posts:
