A proposed merger between the mobile phone networks Orange and T-Mobile could spell bad news for their competition but may not necessarily damage the interests of consumers, it has been suggested.

Under the plans to merge the companies the largest customer market would be created, potentially leaving rivals in the shade.

The Office of Fair Trading has requested to the European Commission to review the aspects of the proposed merger which impact on the UK.

Conrad Longmore, editor of Mobile Gazette, said: “Although the proposed joint venture between T-Mobile and Orange would reduce competition, there would still be four major operators fighting it out.”

He added that the move may be bad news for competitors but that the overall effects it will have are likely to be limited.

A report from Orange when the plans were initially revealed stated that the merger is subject to the approval of the Board of Directors of France Telecom and the Supervisory Board of Deutsche Telekom.

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Posted by Paul Whalley

Written by Mazuma

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