[3GScottishUser]

According to the Telegraph it's a done deal and there will now be a joint venture by what was Orange and T-Mobile UK. It will create Britain's biggest mobile operator with 30 million + customers. It looks like France Telecom will be the majority shareholder but both brands will continue for the time being.

Where does this leave 3 UK as T-Mobile and Orange don't need them and there is little point in helping them with network sharing. It's the infrastructure and back office which will contribute the savings.

Vodafone and 02 may loose out in the short term but if this freezes 3 out of the market they will be quite happy. Li Ka Shing might end up having to nurse a 10 billion loss and offload 3 UK & Ireland as he will have no options left open for the business. It's nightmare time for Kevin Russell & Canning Fok, they have been left high and dry with nothing to remain in the market for.

Some big changes coming and there will be some very serious consequenses for others when the merger is completed.

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/6152560/T-Mobile-and-Orange-joint-venture-to-have-37pc-of-UK-market.html

[getti]

Will be interesting going back to work tomorrow after a week off to see what i can find out.

[3GScottishUser]

If it goes through, and it looks like a runner, then it'll be game over for 3 UK within a year as they have no way to compete.

The UK looks set to have just 2 mobile networks (operating independently) with 4 mobile ops and the MVNO's. That is quite a lot to maintain competition and further consolodation is not out of the question especially for the MVNO's who don't have the muscle to dictate competitive deals from the bigger combined operators.

[3GScottishUser]

Now confirmed officially: http://news.bbc.co.uk/1/hi/business/8243226.stm

[Ben]

Wow, Vodafone just became the third largest UK network in terms of subscribers! :o

The combined Orange/T-Mobile will be an interesting beast to be sure. The details of the merger will be very interesting, as will the regulators input on what concessions need to be made to allow the deal to go ahead. Perhaps Virgin, for example, will need a new home.

Staff cuts will no doubt be brutal as the two networks merge. I wonder also if the culling of phone masts as the network is integrated will create chances for the other operators to move onto the sites instead? The handing over of masts to rivals may even be mandated by the regulators, perhaps. That could lead to improved coverage for customers of all networks - and perhaps if Three were to pick up a number of sites it could help bolster their physical network nicely.

Talking of Three (3), they're definitely between a rock and a hard place now. One assumes that they have sufficient contractual agreements in place with T-Mobile to protect their current network sharing agreement for the foreseeable future, because I can't imagine networks combining at the radio level without significant long term agreements. What with Orange providing the 2G coverage for Three it's possible that it will even assume some sort of MVNO status, with its network largely operated by Orange/T-Mobile with the exception of a few of its own masts that it places in busy areas to save money.

Whether this will be a good or a bad thing for any/all of the operators or customers remains to be seen.

[gorilla]

As I just said on another thread, 3 must be an acquisition target now for O2 or Vodafone. We are moving into a period of consolidation in the UK market and there is no point having 3 large networks and one tiny network. Either way, I can't imagine how 3 intend to compete with the rest.

Maybe on customer service :D

[Hands0n]

Maybe on customer service :D

Don't get me going. I'll only start swearing again :D

[Ben]

Hm yes I wonder if this will create an appetite for 3UK, perhaps for Vodafone given that they're now a little low on subscriber numbers...

[3g-g]

http://www.theregister.co.uk/2009/09/08/t_orange/

Both Virgin and Three seem to be happy enough! The Register even explains how it's going to happen... Virgin stay where they are, on (what will be) the biggest network, Three are integrating their 3G RAN with T-Mo, and OUK currently supply Three's 2G coverage anyway, all seems pretty straight forward to me! The 3G nodes of Orange, T-Mo and Three are all Nokia (IIRC), so that shouldn't cause any problems and the newer pieces of 3G equipment on the networks are able to broadcast more than one operator too... piece of cake this network consolidation business.

Let's just brush over the failed OUK/Vodafone joint venture however...:rolleyes:

[gorilla]

Looks like I might be joining three then, or maybe Orange if they get some decent tariffs, or maybe T-mobile. So much choice - same network!

[Ben]

A T-Mobile/Orange/3UK supernotwork. =D

Perhaps it'll all be for the best and having such a large number of subscribers on a single physical network will allow for something like we've never seen before to cater for our growing demands. But a lot of that will depend on the leadership of the new joint venture - will the motivation to be the biggest, the best, or just the most profitable in the short term?

[solo12002]

I dont think we should cout out O2 or Vodafone going for three, it not increase there numbers by a lot, but would be be less cost to buy the three network with 3G or upgrade your current network to do so?

[3g-g]

I dont think we should cout out O2 or Vodafone going for three, it not increase there numbers by a lot, but would be be less cost to buy the three network with 3G or upgrade your current network to do so?

I think that's a fair enough point, and if O2 or Voda were to come knocking on the door I imagine Three would be quite receptive to selling up... however, would O2 or Voda be silly enough to take on the tiny amount of Three subs and their currently huge debt? I think probably not. The best thing for Three to do is minimise their costs in terms of network roll out and further expansion by sitting tight and let T-Mo/OUK do all the hard work.

[@NickyColman]

I cant wait to see how this all pans out!

I've noticed the tabloids coverage of the merger, with most neglecting to recognise 3 as a network lol :D Most articles I've read have all spoken about 'the 4 networks'.

One thing that does worry me - the head of Orange is going to be commanding this new network giant. Are we looking at Orange Part 2? Lack of innovation? Bad customer service? Prohibitive data tariffs?

-T-Mobile are playing the 'consumer champion' role at the moment with their super cheap deals for everyone but what happens when they merge?

In all honesty, i cant see the -T-Mobile brand surviving. Orange have a stronger brand (in my opinion), plus they've got Orange Broadband (former Freeserve/Wanadoo) - are they really gonna force another huge re-brand onto their broadband subscribers? Surely that cant be good for customer faith/loyalty?

[Ben]

Yeah I think the Orange brand will definitely win out, it has a bigger global footprint than T-Mobile, too. I honestly can't see Orange changing much from what it is now - just being bigger and even more utility-like.

[@NickyColman]

Its such a shame that -T-Mobile will be getting pulled into the Orange brand (as far as we know).

Orange have done nothing in the last few years. They have squandered the fantastic brand they once had. I really dont know who uses them and why!!

Look at the Animals tariff for example! Its, what, 4 years old now? Why? Cant they think of anything new!

If -T-Mobile are going to be assimilated into a new, bigger Orange, then I think i'd rather see a new company swoop in and take -T-Mobile. Sky? Virgin? Anyone else?

[3g-g]

One thing that does worry me - the head of Orange is going to be commanding this new network giant. Are we looking at Orange Part 2? Lack of innovation? Bad customer service? Prohibitive data tariffs?



Actually, the current head of Orange being the head of the whole lot sounds good to me. Orange were in a mess, a real mess, however, they've started to turn things around... Tom Alexander has had a fair old job of it, I for one, would have run off at the prospect of trying to turn Orange UK around and back to its former glory... from the mess FT have made of it, I think OUK are worth a gamble to pull it off. Hell, they must be paying him enough to get something right if he can still be off racing Aston Martins at the weekend!

And for those who don't know, Tom Alexander, OUK CEO, was one of the guys who started Virgin Mobile.