The European Commission yesterday approved the merger of Orange UK and T-Mobile UK, with the deal aiming to close this Spring. As expected, parent companies France Telecom and Deutsche Telekom agreed a number of measures aimed at easing regulators’ concerns. Both operators will divest 2×15 MHz of their joint GSM spectrum (1800 MHz) by the end of 2011. Of the divested spectrum, 2×10 MHz needs to be cleared by 30 September 2013 and a further 2×5 MHz needs to be cleared by 30 September 2015 at the latest. In addition, T-Mobile’s existing network sharing deal with 3UK, owned by Hong Kong-based Hutchison Whampoa, was reinforced. A statement from Orange noted that both Orange and T-Mobile will now begin work on integrating their combined 19,000 workforce, although reports suggest it will likely lead to the loss of about 1,000 jobs.
 
Announced last September, the so-called T-Orange merger will create the UK’s largest mobile operator with almost 30 million customers and around a 37 percent market share. It will push current market-leader O2 into second place (on 28 percent) and Vodafone into third (23 percent). UK consumer groups, including the Office of Fair Trading, initially expressed concern that the merger will have a negative effect on competition, but a statement from the Commission yesterday claimed that “the commitments offered by the parties remedy the identified competition concerns.” The new business will have pro forma 2009 revenues of approximately EUR8.5 billion and EBITDA of EUR1.55 billion. The management team will be led by chief executive, Tom Alexander, currently CEO of Orange UK, whilst Richard Moat, currently CEO of T-Mobile UK, will take on the role of chief operating officer.  The board of the new joint venture company will comprise representation from both Deutsche Telekom and France Telecom. It is expected that the T-Mobile and Orange UK brands will continue to operate in the country for at least eighteen months after completion of the deal.