Consumer groups push for T-Mobile Orange merger investigation

Consumer groups are pushing for an investigation into the effects of the proposed T-Mobile/Orange merger on the UK mobile market, to ensure that 'the potential effect on competition is fully explored'.

In a joint letter to the Brussels commissioner for competition, groups Consumer Focus and the Communications Consumer Panel (CCP) have urged the competition watchdog to approve an investigation. The move follows comments by consumer body Which? that the proposed merger makes a detailed look at the state of the UK mobile market 'a necessity'.

The issues raised in the letter include the impact of the lack of competitive innovation would have on expansion of 3G networks. The letter also raises concerns about spectrum allocation, and the potentially large allocation which the merged entity could come away with; as well as the effects of the merger on the UK's MVNOs (mobile virtual network operators) who don't own their own networks but lease capacity from the network owners in order to provide services.

Consumer Focus and the CCP are hoping to have control of the merger decision, which currently lies with Brussels, 'repatriated' to the British authorities, which would turn the decision and surrounding investigation over to the Office of Fair Trading and the Competition Commission. This would result in a lengthier decision-making process, but would be more appropriate, the groups argue.

"We believe that this review would be best carried out at the national level, since the impact of the merger would be felt most strongly in the UK," said the letter.