Dark clouds hovering over Orange & T-mobile merger
All those people waiting eagerly for the merger of Orange & T-Mobile will have to wait more for the proposal to get materialized. The reason stated behind the delayed proposal says that the merger will affect the competition and market.
Online, February 8, 2010 (Newswire.com) - All those people waiting eagerly for the merger of Orange & T-Mobile (http://www.directphoneshop.co.uk/tmobile/tmobile-phones.asp) will have to wait more for the proposal to get materialized. The reason stated behind the delayed proposal says that the merger will affect the competition and the market is not ready for it. In other words, the two companies rule the mobile market and in case of the Mobile phone deals, the other providers are sure to take a back seat. The deal has been postponed for about a year now and not likely to take place before December.
This proposed union has also put higher authorities in contemplation as OFT (Office of Trading) has asked the European Commission to look into the alliance. Though there are no concrete reasons given against the coalition and the one which is stated questions the competition. It puts a question mark on the services of other providers, for the union is supposed to be come out with much improved plans. These two companies, Orange and T-Mobile enjoy users' trust and appreciation and the union will tighten their hold on the market. As per reports, if the two companies get into the agreement, then, their partnership would yield them a whopping 43 per cent share in the ever expanding mobile industry.
In the present scenario, O2 rules the market to a great extent and enjoys a considerable 27.9 percent share. However, the proposed merger is sure to grab more eye-balls as a number of beneficial deals, attractive packages and useful schemes can be expected out of it. But on a serious note, the implementation of the deal will limit the number of service providers to four only.
Apart from this, consumer groups are also requesting the concerned commission to look into the matter properly. Not only this, there are providers like O2 and Three who want complete investigation to be carried out before reaching out to any conclusion. Now the European commission is all set to deal with the matter and is likely to come out with the result by the end of this month. So, whatever the outcome is, people who were expecting more out of the merger will have to put their plans in the cold box for some more time.
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Tags: mobile phone deals, orange mobile, T-Mobile