Orange and T-Mobile merge

Thursday, 17 Sep 2009, 5:55pm
Orange and T-Mobile merge

It has been announced that telecommunications firms Orange and T-Mobile are to increases their market shares by becoming one entity.

UK Mobile phone companies Orange and T-Mobile have announced that they are to merge into one entity, prompting concerns about whether the deal will see cheap bargain deals being offered to consumers.

The amalgamation will make the joined firm the largest on the UK market with 28.4 million customers, beating current biggest shareholder O2 by ten per cent to take 37 per cent.

But moneysupermarket.com has commented on the decision, saying that one less major mobile operating platform will ultimately mean less choice for consumers and may decrease competition in the industry.

It recognised that T-mobile has offered "creative tariffs" and Orange has been popular through its text-message-based money off coupons deal at cinemas every Wednesday, but with such a large market share then it may lose the incentive to keep them going.

James Parker, manager of broadband and mobiles for moneysupermarket.com, said: "Ofcom will have a role to play in this merger and should do all it can to ensure that the best interests of the consumer are taken in to consideration at every stage.

"There will be many customers of both Orange and T-mobile who have questions on what this will mean for them and whether the talk of better customer service and network coverage will actually be delivered if the merger is given the go ahead," he added.

moneysupermarket.com recently closed entries for a competition which gave consumers the chance to have their utility bills paid for a year.

The lucky winner received free energy for 12 months, a prize worth £1,300, while ten runners up also got their hands on £300 to offset the average rise in utility bill costs between this year and 2008.

Written by Garry Sagan

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