T-Mobile/Orange merger: OFT throws weight behind UK investigation

In a move which increases the likelihood of delays to the proposed Orange/T-Mobile merger, the Office of Fair Trading (OFT) has called for scrutiny of the deal by the UK regulatory authorities.

The merger of the two companies - first proposed back in September last year - would create the country's largest mobile operator by some measure, if it goes ahead. At present, responsibility for the decision lies with Brussels - which is where Orange and T-Mobile would like to leave it, in hopes of a decision in their favour as early as this month.

However, there are a number of concerns here in the UK which many fear won't be properly addressed by Brussels - not least the considerable market-share the merged company would account for, and the large spectrum allocation it would be left holding. 

The news of the OFT's support will be welcomed by consumer groups who have been campaigning for some time for a UK review, fearing that the merger will reduce competition and so result in higher prices to consumers. The OFT, meanwhile, is said to be concerned about the effects of the merger on 3, which as the UK's smallest network potentially has the most to lose to a mobile giant like T-Orange.