Orange and T-Mobile merger could be delayed by latest broadband deal

In order to bring about the vision of broadband for all by 2012 as seen by Gordon Brown, the government has managed to work out a last-minute deal with all five wireless networks, although this may have placed a significant hurdle in the way of the merger between T-Mobile and Orange.

There has been much anger and protest from a number of consumer groups who are all for this latest merger as it will create the largest mobile phone company in the UK with a combine market share of 37 percent, and the recently announced deal is likely to involve the Office of Fair Trading asking for EU regulators to let UK Authorities investigate the proposed merger.

The deal could see a portion of Orange and T-Mobile’s mobile phone spectrum in the UK sold by force or at the very least the OFT could delay the merger by asking for a UK regulatory look into the deal, which end in an investigation by the competitions commission.

A deal has now been struck that would place caps on how much spectrum an operator is allowed to own following months of intense negotiation between Kip Meek, the governments wireless spectrum advisor and the industry, which led to a summit meeting being called recently with the bosses of all five UK operators by Lord Mandelson.

It has been advised in the deal that a “regulatory remedy is required to prevent too large a share of the UK spectrum being owned by T-Mobile and Orange combined, although neither O2 nor Vodafone will be made to give up any of the assets they currently have.

The promise made by the old Communications Minister, Lord Carter, as part of the government’s Digital Britain report, to provide universal broadband access throughout the UK by 2012 has led to the recent negotiations with the five mobile phone operators.

Source – Guardian