Competitiveness 'could decrease' after mobile network merger

26/01/2010

Competitiveness Could Decrease After Mobile Network Merger

Market competitiveness could decrease when Orange and T-Mobile merge into one single network, it has been revealed.

Last year, it was revealed that the Orange and T-Mobile networks were set to merge to create the UK's leading mobile network, with approximately 37 per cent of the country's mobile subscribers with and some 28.4 million customers.

Speaking at the Westminster eForum Keynote Seminar - Progress of the Digital Switchover and Next Steps for the Digital Dividend Review - Kip Meek, chairman of the Ingenious Consulting Network and independent spectrum broker, said: "If you're trying to ensure there is sufficient competition in the marketplace, if the marketplace goes down from five to four, that makes that particular issue more contentious."

He added that, at present, the UK is in danger of failing to make decisions about spectrum and that would be "incredibly damaging for European consumers and European competitiveness".

However, the owners of the two operators - Deutsche Telekom and France Telecom - believe that the new enlarged operation will provide more effective competition to the two largest mobile network operators in the UK market, O2 and Vodafone.

This could see consumers provided with better value for money deals to consider when upgrading their old mobile phone.

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Posted by Paul Whalley