T-Mobile and Orange set to merge in the UK.

It was revealed last week that T-Mobile and Orange are set to merge their UK interests in a move that they claim will ‘bring substantial benefits to UK customers, better network coverage and quality’.

The deal, if completed, will result in a new market giant with a combined 37% market share overtaking O2’s 27%. The two companies will run separately for the first 18months whilst considering branding options. Tom Alexander, Chief Executive at Orange would be leading the merged provider with T-Mobiles UK Boss Richard Moat taking on the role of Chief Operating Officer.

Currently Orange employ 12500 people in the UK and T-Mobile 6500 and there is concerns after suggestions that part of a £445million spending cut would come from slashing staff numbers and closing and combining stores.

Despite the fact that the deal will most likely face a probing from the UK and EU authorities the low prices and level of competition currently in the industry means it will most likely go through. The provider would then be able to move away from rock bottom prices which will mean that although customers currently on contracts will remain paying the same as before when it expires they may find themselves facing a price increase.