Broadband Agreement Could Delay Orange and T-Mobile Merger

The proposed merger of T-Mobile and Orange could seriously be impacted by the government’s new regulations on spectrum distribution that are poised to be introduced soon.

According to the new proposals, which could be unveiled as early as this week, the government is to define the limits of the mobile broadband spectrum that broadband and telecom firms can have access to.

The proposed deal between the two major network operators in the UK, which is to be spelt out this week, could involve the Office of Fair Trading (OFT) demanding EU officials to let UK authorities launch a probe into the planned merger.

Several consumer groups are already lambasting the proposed merger of the two, as it would form the country’s largest mobile phone operator with a market share of 37 percent.

Consequently, the duo could be forced to sell some part of their mobile broadband spectrum in the UK, according to a report from The Guardian.

In any case, a request made by the OFT to European regulators to investigate into the impacts of the proposed deal would presumably cause unwanted delays for the merger.

Both the OFT and the Competition Commission will be made responsible for defining the level at which the cap will be introduced in the spectrum.

Our Comments

The merger was only part of the equation. It is highly likely that the plans to get the two network companies together will hit some major obstacles soon partly because of the implications such a massive player will have on the rest of the market. From MVNOs to subscribers and smaller players like Three, they will all be affected in a way or another.

Related Links

Government broadband ruling to impact on T-Mobile and Orange merger

(Cable.co.uk)

Broadband deal could delay merger of Orange and T-Mobile

(Guardian)

T-Mobile, Orange Merger Could Be Delayed, Guardian Reports

(Guardian)

Orange and T-Mobile tie-up faces delays on back of spectrum deal

(TeleGeography)