T-Mobile and Orange to create UK's biggest mobile network

Posted by David Walker on Tue 8 Sep 2009

But will bigger mean better mobile deals?

After much speculation, T-Mobile and Orange have announced plans to merge in the UK, creating the country's largest mobile network in the process with a market share of 37 per cent and a customer base of 30 million customers.

Don't expect a change of name on your bills, both companies are expected to be run as separate businesses, but they will share the same infrastructure, which could mean savings of £3.5 billion for the two mobile giants. That's all fine and dandy, but will it mean more cash in your back pocket? Well, quite possibly, with the official statement promising 'substantial benefits to UK consumers'. Although whether that means cheaper bills or just better network coverage isn't clear.

That 37 per cent of market share puts it well ahead of O2 (27 per cent) and Vodafone (25 per cent), both of which were rumoured to have put in bids of around £3.5bn-£4bn for T-Mobile, which has been struggling in the UK market for some time. But that size is also likely to put it under the scrutiny of both Ofcom and the European Union in the coming months, ahead of the deal being formally signed.

The new deal just might impact on other networks in the UK too. Virgin mobile runs on T-Mobile's network and accounts for about 25pc of T-Mobile's British customers, while 3 (the smallest mobile network in the UK) has also recently entered into a network-sharing deal with T-Mobile. How the new pact impacts on both will no doubt become clear when the smallprint gets worked out over the coming months. Expect this one to run and run.

Link: T-Mobile (via Daily Telegraph)