France-Telecom's Orange and Deutsche-Telekom's T-Mobile will combine their forces as a new joint venture named Everything Everywhere but oddly enough will still keep their own well recognised brand names for their customers.
The merger will be completed by July and by the looks of it, T-Mobile and Orange's move will have a deeper impact in the backend than for front end services. Therefore one can expect the brands to be competitors in the high street but share the same structure.
Both companies will have a total of 30 million subscribers in the market, nearly half of the UK population and will be by far the largest mobile operator with 37 percent of the market.
T-Mobile and Orange have a combined 16,500 employees and 700 high street stores; T-Mobile, which is the smaller of the two, has had a pretty rough time over the last year or so.
It will be presented as the straight forward, value strand of the Joint Venture, possibly aiming to rival mobile virtual network operators like Virgin Media, Tesco or O2's Giff Gaff.
Orange however will remain the premium one in a more traditional role. Tom Alexander, who will be taking the top job at Everything Everywhere, said in a press statement that "We are Everything Everywhere – it’s our name, our vision, and our ambition – and we run two of the UK’s biggest brands Orange and T-Mobile. It’s our vision to give our customers instant access to everything everywhere, opening up a world of endless possibilities."