T-Mobile and Orange set to merge

Thu Nov 5 2009, 17:13 PM UTC

T-Mobile and Orange are expected to create the UK’s largest mobile operator, having signed a final agreement on a 50-50 joint venture that will combine their businesses in Britain. Analysts say the deal will come at a critical time for T-Mobile as its profits fell 31% year-on-year to EUR447m (USD665m) in Q3 and its customer base shrank by 1.2% to 16.6m people. Some believe the joint venture will save Deutsche from having to sell T-Mobile for less than it hoped. Orange is set to strengthen its position in the UK telecoms market without having to accrue any more debt.

Deal Details

  • Status completed

The two companies claim that together, under German parent Deutsche Telekom, they will offer customers better network coverage, better quality 2G and 3G services and better customer service through an expanded number of stores.

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