Consumer fears over Orange and T-Mobile merger

By Elliot Wright, 4th February 2010

The Office of Fair Trading is to investigate the proposed merger between mobile phone giants Orange and T-Mobile after fears were raised of the deal being detrimental to consumers.

The proposed deal would create the UK's biggest mobile network, covering almost 30m customers.

However, there are fears that the deal would mean less competition in the sector which could see consumers facing higher prices as well as thousands of jobs losses at the respective companies.

Consumer groups have thus welcomed the OFT's plan to scrutinise the deal which could prevent the merger going ahead if potential consumer detriment is found.

"Our view is that the joint venture threatens significantly to affect competition in mobile telecommunications in the UK," said an OFT spokesman.

Less competition in the sector could see consumers facing higher prices as well as thousands of jobs losses

Commenting on the OFT's plan to investigate, Which? chief executive Peter Vicary-Smith said: "We're pleased that the OFT has asked to investigate the deal and see no reason why the European Commission should object. It's only right that a deal affecting UK consumers should be scrutinised by UK regulators.

"This merger will clearly have a huge impact on the mobile market, since it will form the biggest mobile operator in the UK and bring the number of networks down to just four. We don't believe the deal should go ahead unless the OFT and Competition Commission are satisfied there will be no detriment to UK consumers"

Orange have insisted the merger would be "good for Britain" and they were already liaising with the authorities including the OFT and OFCOM.

Useful links:

Mobile phone contract complaints

Claims Financial