Orange and T Mobile deal could be delayed


October 13, 2009

As the government moves forward with its plans to apply new regulations to the spectrum being used by mobile providers, these plans could in have an impact on the proposed merger between Orange and T Mobile.

The problem for the government is opening up new avenues in order for the provision of broadband services to the entire UK.

This cannot realistically be done without the use of mobile broadband.

However, the spectrum owned by the mobile providers is wide ranging and in order for the government to achieve its goal, some of the mobile providers will need to give up parts of the spectrum that they own.

There have been concerns over the merger of Orange and T-Mobile as it would give the combined firm a market share of thirty seven per cent.

Until the spectrum issue has been sorted out, it is unclear how the situation will play out.






 

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