T-Mobile and Orange confirm they're to merge their UK operations

T-Mobile and Orange have announced they're to merge their UK businesses, forming a telecommunications giant with 28.4 million customers. Although this merger is still very much in its early stages and has yet to be officially completed, both companies have announced they hope to sign and seal the deal by November this year.

A company spokesperson, speaking on behalf of the two firms, commented the merger would “bring substantial benefits to UK customers”. It was also suggested the deal would bring expanded network coverage, better network quality and improved customers services. After the deal is complete both brands will operate separately for the first 18 months so branding options can be reviewed.

Of course, the news is filled with speculation on how this will affect each respective company's mobile phone customers, but as both providers supply either fixed line broadband, mobile broadband (or both), this deal could spell change for internet customers too.

Speaking to the BBC on the effect this merger could have on customers, lawyer Chris Watson suggested customers on existing mobile phone contracts should not see their tariffs changed, but added: “When your contract comes up for renewal you may well find the price is more expensive.” Of course, this rule could also affect fixed line broadband customers too.

Reassuring its customers, an Orange spokesperson commented: “It's business as usual for everyone in the Orange UK. In the immediate future, this announcement does not have an impact on Orange UK's customers. The agreed timeline of this deal means that the earliest the joint venture would be formed would be during the first half of 2010.”

A spokesperson for T-Mobile added: “The 50:50 joint venture will be in a better position to invest in new services and to exploit new technologies.”

For more information on how this deal could affect mobile broadband customers, visit Mobile Broadband Genie's news.