Orange UK and T-Mobile UK are currently in talks regarding a possible merger after T-mobile’s parent company Deutsche Telekom revealed that the operation was for sale. The two companies are currently in exclusive talks about a 50-50 merger which would see the creation of a multibillion pound company in the UK made up of two arguably underperforming assets. So will two wrongs make a right?
While it is not strictly speaking correct to say that both Orange and T-Mobile have failed in the UK market, they have not exactly set the world alight as yet. However, both companies have major plans regarding the UK broadband industry where mobile broadband is becoming ever more popular and a combination of the two groups will not only bring together millions of customers but a technology pipeline which could bear significant fruit.
It is also highly likely that a combined Orange UK and T-Mobile UK, if the deal is actually rubberstamped and goes ahead, would introduce significant competition into the UK broadband industry where some consumers have complained about pricing competition. The truth is that mobile broadband in the UK is still of a fairly young age although developments are being announced on regular basis and catching the eye of both consumers and businesses alike. We could be moving towards a significant chapter in the UK mobile broadband story.