Orange T-Mobile Merger Will Change Everything
Orange and T-Mobile recently announced plans to merge their UK businesses, which may mean big changes for customers in both the long and short term. The merger between Orange and T-Mobile will have a large and clear impact on the mobile market in the UK and will have implications for investors, consumers and competitors alike.
Cheri Stanaway, telecoms expert at Which? said the merger will create the largest mobile carrier in the United Kingom. In addition, Stanaway said that the number of networks available would be reduced to four. The merger, while largely an economic decision for the company, will have an impact on consumers and competition in the mobile market, and not all of the changes will be positive for consumers or for the marketplace.
Which? has concerns about the merger and the ultimate changes consumers will have to face, said Stanaway. She went on to say that Which? has concerns about longterm consumer choice, and the impact such a large company will have on the competitiveness of the marketplace.
Smaller networks, as well as virtual network operators, may have a more difficult time competing for business in the marketplace once the merger is complete. Stanaway said Which? is thinking of networks like 3 and Virgin Mobile.
In addition, fewer carriers means fewer choices for consumers, making it difficult for consumers to find a reliable, affordable service.
Which? does have high hopes that the merger will provide increased benefits to customers at both Orange and T-Mobile. In fact, According to Stanaway, neither Orange or T-Mobile has received high marks in customer satisfaction surveys sent out by Which? in the past and that, among other things, Which? hopes the merger will provide the companies with an opportunity to place greater emphasis on customer service.
Other possible improvements that may arise from the merger include better coverage through 2G and 3G networks as well as lower prices.
Stanaway said Which? will continue to watch the merger for new developments. She said it is important that consumers have a representative throughout the process and that Which? will be that voice, if needed.
The merger must still pass the scrutiny of regulatory bodies and investors.
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