What will the Orange - T-Mobile merger mean for shoppers?
Wednesday, September 9th, 2009 by JoBig news in the mobile world this week that Orange and T-Mobile will be joining forces to create a mammoth-sized network with around 28.4 million customers combined, covering 37% of the UK mobile market. Currently, market shares for the major players look like this:
Vodafone – 27%
O2 – 25%
Orange – 22%
T-Mobile – 15%
The merger will bring the UK network selection down from 5 to four (excluding mobile virtual network operators such as Tesco and Virgin).
Although the merger will reportedly cost between £400 million and £600 million, it’s expected to deliver savings of around half-a-billion pounds per year by 2014, saving on duplicate shops, base stations and customer service facilities.
But what does all this mean for shoppers? Let’s start with the potential negatives:
- Less choice. We all like to have a good range of products and services to choose from and this will reduce our options considerably
- It’s possible that with less competition in the market, we might be looking at higher prices for handsets and contracts
- Uncertainty for current contract holders
- What on Earth will happen to Orange Wednesdays! I have to admit, this is a huge cause for concern. The midweek bargain pizza and film have provided THE single form of weekly entertainment for millions.
And the good points:
- Hopefully less pylons all over the place
- Better reception
- Potentially better customer service
- A greater range of handsets
- An end to the exclusivity deals with O2? It would be good to share the handset love. So far, O2 has the most anticipated handsets like the iPhone and the Palm Pre.
Of course, none of this is finalised yet. Things should go ahead in November and if they do, each company will keep its individual name for at least 18 months. After that, who knows what they’ll come up with. Any ideas for the new name? I think I’ll be boring and go for Orange Mobile…or maybe Trangbile. Nice!










