T-Mobile and Orange Joint Venture Will Reshape the UK Mobile Market

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On 8 September 2009 Deutsche Telekom and France Telecom confirmed that they are in exclusive negotiations to combine T-Mobile UK and Orange UK into a 50:50 joint venture company. The agreement is expected to be signed by the end of October 2009 but will be subject to approval from the relevant competition authorities. It will create the UK’s largest network operator with approximately 28 million subscribers accounting for 37 percent of the market.

If the deal is successful the two network operator brands will be maintained separately for 18 months after the transaction. Tom Alexander, the current head of Orange UK will become the chief executive officer of the new entity together with Richard Moat (the current head of T-Mobile UK) who will be chief operating officer.

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