T-Mobile, owned by Deutsche Telekom, and Orange Group announced a plan to merge their UK operations yesterday. The merger will create the biggest cell phone carrier in the UK. ZDNet has more:
The as-yet-unnamed joint venture will have a combined customer base of about 28.4 million people, or 37 percent of the market, with the deal expected to complete in November.
The companies said the merger will cost between £400m ($656m) and £600m ($984m). It is expected to deliver savings of around half-a-billion pounds per year by 2014, by removing duplicate base stations and retail outlets, as well as other efficiencies in operational staff and customer support.
The deal will need shareholder approval from both companies and will also have to be cleared by British and European regulators. The UK mobile telecommunications market is widely regarded as highly competitive, and no regulatory problems are anticipated.