The T-Mobile and Orange merger is one step closer

DEUTSCHE TELEKOM AND FRANCE TELECOM have inked the final agreement for the merger of T-Mobile and Orange in the UK.

Originally announced in September, the move will see the operators form a joint venture company with each owning half of the new organisation.

With Orange currently holding about 22 per cent of the UK mobile market and T-Mobile's serving 15 per cent, the deal will see the merged operator take a massive lead in market share, overtaking current leader O2 which currently has approximately 27 per cent of the market.

"The negotiations were conducted in a fair way on both sides and I am certain that this spirit of professionalism and partnership will shape the future of our joint venture," said Timotheus Höttges, chief financial officer of Deutsche Telekom.

Although the announcement marks a major step forward for the deal, signalling that all due diligence has been done and dusted, the whole thing needs approval from the Supervisory Board of Deutsche Telekom and the Board of Directors of France Telecom as well as the relevant regulatory authorities.

Some doubts have been raised over the proposed merger, citing both competition and spectrum issues.

"The relative terms of the transaction as announced on 8 September were fully confirmed," added Gervais Pellissier, France Telecom's deputy chief executive officer in charge of Group Finance and Information Systems.

"I would like to stress the excellent cooperation between the teams of Deutsche Telekom and France Telecom, which enabled us to deliver on the timing and process objectives which we set out in September."

If all continues according to plan, the new supersized mobile monolith should be arriving in the first half of 2010.

Somehow 'the future's bright, the future's magenta' just doesn't have the same ring to it. µ