Consumer fears over Orange & 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.
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