After two months of negotiations, Deutsche Telekom (T-Mobile owner) and France Telecom (Orange owner) spill the beans on the joint-venture arrangements that are set to catapult them to dominance of the UK market.
Financial wizardry and immediately repaid loans between the new company and the proud parents will create an equal 50/50 partnership. Leadership will be provided by Tom Alexander from Orange, with Richard Moat from T-Mobile taking the post of chief operating officer.
Earlier in the year, both Vodafone and O2 (among others I would imagine) tried to buy T-Mobile UK at a value price. Reaction to the merger now seems to be putting on a brave face and stealing a march on brand loyalty.
It’s certainly true that internal reorganisation and cuts to generate the proposed £3.5 billion in savings will be priorities for the new giant for many, many months.
With the detail released, the OFT (Office of Fair Trading) can make a final ruling with the advice of Ofcom.
Originally published at OneMobileRing.com