Orange Merger With T-Mobile Confirmed

Deutsche Telekom and France Telecom have finalised the merger of their UK operations, T-Mobile and Orange, after undergoing scrutiny from various competition agencies in the UK and Europe – including Ofcom.

The deal fully confirms the terms of the 50-50 joint venture which were first announced on 8 September 2009. The merger will create the country’s largest mobile network, with over 30 million customers and a reported market share of 37 percent.

Under the terms of the deal, the two brands will continue to operate independently, but will share infrastructure and account management functions. The deal will allow T-Mobile customers to take advantage Orange’s 3G coverage.

Timotheus Höttges, CFO of Deutsche Telekom, said that “Our joint venture, which has now passed a major milestone, will set new standards in the UK mobile sector.”

Completion of the deal is expected in the first half of 2010, but is subject to the approval of the Supervisory Board of Deutsche Telekom and the Board of Directors of France Telecom.

Last week Orange also became the second UK mobile operator to launch the iPhone on its network. However, it is not yet known whether T-Mobile customers will be able to upgrade to the latest iPhone following the merger.