Orange and T-Mobile merger approved this afternoon

[simax]

The EC has agreed on the merger of the two networks after the OFT withdrew their request to investigate the merger.

Just been announced.

[satsuma]

Yeah I know, it's pants
Ultimately, I think the consumer may not win.

[getti]

Interesting times ahead I think. Glad its all sorted now

[richardyates]

disaster for consumers, networks laughing all the way to the bank

oh well, they are 5 expected numbers down - got last PAC this afternoon

[getti]

Why do people think this will be a bad thing for customers?

[satsuma]

Well....

• Less competition usually leads to less choice which will translate as poorer tariff choices - Orange already offer sh1te tariffs
• T-Mobile and Orange will possibly rationalise cell sites which may mean poorer coverage
• T-Mobile & Orange will probably rationalise customer service which may lead to poorer service and longer call centre waiting times only to speak to a complete numpty at the other end

I quite like T-Mobile in the UK and see it's 'demise' as a sad thing.

[MilhouseVH]

Originally Posted by getti

Why do people think this will be a bad thing for customers?

Reduced competition (from 5 operators down to 4) for starters.

The reason T-Mobile UK had to merge (and was on the market to be sold) was because it wasn't generating "sufficient" profit, this leads me to believe that in the longer term the combined entity will offer less for the same price or the same for a higher price.

Screwing more money out of punters is the only logical result once competition is reduced.

I personally thought the market in the UK was healthy with keen prices. Five UK operators is higher than the average number of operators in most other European countries, and I believe that went a long way to explain why profitability at T-Mobile UK was less than other European T-Mobile territories. Clearly the execs at T-Mobile HQ thought it wasn't capable of generating sufficient profit and couldn't find a solution to the problem beyond consolidation.

[Dinalli]

Also i wonder if this means jobs at risk too.

I cant see the point in Orange/Tmob having 2 stores on the same high street, quiet possibly the same with call centers too.

Unfortunatly mergers these days normally mean job losses.

[MilhouseVH]

Originally Posted by Dinalli

Also i wonder if this means jobs at risk too.

Almost certainly, I just hope there aren't too many locations that have both a T-Mobile and Orange store in close proximity.

[getti]

For me, there is an Orange store across the road 3 doors down from the T-Mobile store I work in