14 DAY TRIAL // UK wireless carriers Orange and T-Mobile announced last year plans to merge their operations through the forming of a 50:50 joint venture, yet it seems that their plans are still scrutinized by the Office of Fair Trading, which believes that the joint-venture might affect the competition on the market. The OFT is reportedly asking the European Commission for approval to further look into the merging plans of the two carriers, and is also asking for additional information on the matter.
According to Mobile News, the OFT announced last week that it was requesting additional information on the merger, so as to decide whether the competition regulatory board in the UK, the Competition Commission, should intervene in the deal. “The OFT's initial view, following consultation, is that the joint venture threatens significantly to affect competition in mobile telecommunications in the UK,” is what the Office said in a statement.
As many of you might already know, Orange and T-Mobile announced, back in November, plans to form a 50:50 joint venture, a company that would become the largest wireless network in the UK, at least when it comes to market share figures. In case the merger is approved, the new entity would account for around 37 percent of the telecommunications market in the country.
However, it seems that other carriers in the country are not happy with the move, and 3 UK is one of them. The operator said that the joint venture would have monopoly on 1800MHz spectrum if formed, something that raises concerns. “We are concerned about the short and long-term competitive issues which the proposed merger raises for UK consumers and the mobile market. We believe that the OFT is right to call for the merger to be scrutinized where it matters most, the UK,” 3 UK chief executive Kevin Russell stated.
According to him, the merger would result in the joint venture accounting for around 84 percent of the nation's 1800MHz radio spectrum, and the spectrum is seen as crucial for the ”realization of the Digital Britain initiative.” Russell concluded: “For the merger to take place without significant harm to consumers and competition we believe the merged operator should be required to release at least a third of the 1800mhz spectrum it currently leases.”