Wednesday, September 9, 2009

T-Mobile, Orange UK JV creates new market leader


Deutsche Telekom's T-Mobile and France Telecom's Orange have agreed to merge their UK operations in a 50/50 joint venture that will create a new UK market leader. The deal will reduce the number of mobile network operators in the UK market to four, which will bring it in line with most other comparable European markets.

In a statement citing Ofcom statistics, Orange and T-Mobile - currently the third- and fourth-largest mobile operators in the UK, respectively - said that the combined business would have 28.4 million customers, giving it an approximate 37 percent market share, pushing current market-leader Telefonica O2 into second place (on 28 percent) and Vodafone into third (23 percent). 3 UK remains the country's smallest network with an estimated 5.8 percent market share, while Virgin Mobile UK - an MVNO that uses T-Mobile's network - is also a major player with an estimated 6.2 percent share.

Nomura analyst Stuart Jeffrey commented "Nokia Siemens faces the biggest downside risk on the infrastructure side. In supplying both networks, NSN is exposed to almost all of the planned capex savings,"

source: GMBB, reuters, wireless intelligence

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