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Orange and T-Mobile have announced plans to merge in a deal that would create the ... Smartphone News forum

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    srl7741's Avatar
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    T-Mobile and Orange to merge

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    Orange and T-Mobile have announced plans to merge in a deal that would create the UK’s largest mobile operator.
    The two companies hope to complete the deal in October, provided the plan gets approved by competition regulators. Orange and T-Mobile are currently the third and fourth largest operators in the UK, but the combined company would leapfrog O2 and Vodafone to become the UK’s largest with 28.4 million customers and a 37 percent share of the market.

    If the merger gets the green light, it’s expected that the two brands would continue to operate for at least 18 months while the company decides on its future marketing strategy.

    The partners said the deal would “bring substantial benefits to UK customers,” including improved network coverage and “enhanced indoor and outdoor network quality for 2G and 3G services.”
    It would also result in £3.5 billion savings as the operators bring down masts, close retail outlets and trim call centre staff. Orange currently has 13,000 staff in the UK; T-Mobile has 6,500.

    However, James Parker, mobiles manager at moneysupermarket.com, said the deal would ultimately mean one less mobile operator in the UK market and could potentially mean less choice for the consumer. “T-Mobile may currently be one of the smaller players but it has been creative with its tariffs and Orange also has unique deals such as Orange Wednesdays.”

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    I suspect that O2 and Vodafone didn't particularly want to add the crappy T-Mo business on to their own. However, each just didn't want the other to have it either. Otherwise, they wouldn't both have bid the same reported amount at a level which was bound to be rejected.

    The integration and CS-facing issues will be a nightmare. The previous "big 2" will happily sit back and welcome disgruntled churn, while the new "leader" invents new products that will erode margin even further.

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    Wait

    this wouldnt apply to at&t(orange in UK) and Tmo in the US right. I hope not I hate at&t

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    MStrawder's Avatar
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    Quote Originally Posted by mspatriots View Post
    this wouldnt apply to at&t(orange in UK) and Tmo in the US right. I hope not I hate at&t
    Nope. This is strictly in the UK at the moment. I think it's a good idea. It could get the other major carriers in the region to really step up their game and become more competitive. Often times companies get to the top and become complacent because they know the service they offer cannot be matched whether in terms of coverage or capabilities. T-Mo isn't the biggest carrier in the states by far, but the one major consensus has always been that they have the best customer service. After having belonged to all of the major US carriers except for AT&T, I can say that it has been true for me and it's why I've been a customer for over 8 years.
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    Whereas the major consensus in the U.K. is that their customer service is crap and Orange ain't far behind. Ah well...

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