Calls for T-Mobile Orange merger scrutiny in the UK

Those parties in the UK mobile market who are not part of the T-Mobile/Orange merger are calling for the scrutiny of the proposed venture to be carried out in the UK, rather than in Europe.

Vodafone, O2 and 3 are claiming that UK regulators would be better positioned to assess the proposed merger than their counterparts in the Brussels. Currently responsibility for the decision as to whether the merger will go ahead lies with the EC, but there have already been calls by consumer groups for the process to be turned over to the UK authorities such as the Office of Fair Trading and the Competition Commission; because it is believed that these bodies will conduct a more rigorous investigation.

Of course Vodafone et al are claiming that the preference for calling in UK regulators is because the merger affects UK markets and UK consumers. However the fact that the T-Mobile Orange alliance will have control of a large allocation of valuable broadcast spectrum is also a factor; as 3 UK's head Kevin Russell admitted to the financial times.

Meanwhile anyone involved in the potential merger, including T-Mobile and Orange and their parent companies Deutsche Telekom and France Telecom would prefer the decision to be made by the EC, where less hold-ups are likely to occur.