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Currently, the largest mobile network operator in the UK is the Vodafone –and judging by the company’s powerful 3G network which has been able to sustain many iPhone users and even attract iPhone users from other networks to switch (namely from O2), they have the established themselves on the forefront of the mobile telecommunications in Europe. While they are large, they do not control the industry. One possible merger has the potential to do so.
A few months back, talks between Orange UK and T-Mobile UK have come to an agreement that the two major network operators would merge. The resulting merger would create a network larger than Vodafone; the largest network in UK and possibly second only to China Mobile in the whole world.
Of course, the creation of such a powerful merger is not always welcomed by the industry. Competitors fearing major losses due to the presence of such a powerful player are obviously against the merger. The Office of Fair Trading has filed for a full investigation of the merger by British authorities.
Despite the merger already having been scrutinized in Brussels by regulators, the OFT, and Ofcom, the tentative February merger of the two companies has been put into another delay.
Meanwhile the merger also places 3 mobile in a very tight spot. Kevin Russell has stated that since 3 mobile relies on T-Mobile’s network, if the merger does not have provisions for 3, then their company would not be able to properly compete in the telecommunications industry.
Once merger pushes through, it would give T-Mobile and Orange the largest mobile phone spectrum in the region –which is one of the main reasons why the merger is being investigated; the upcoming merger would be able to control the telecommunications industry in the UK.
For more details and information on the merger and its possible ramifications on the telecommunications industry, go straight to the Guardian UK.
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