Deutsche Telekom and France Telecom reveal 50:50 joint venture.
Following a day of hectic rumours, Deutsche Telekom and France Telecom have confirmed that they ARE planning to merge T-Mobile UK and Orange UK.
The new operator will have a combined mobile customer base of around 28.4 million, accounting for 37% of UK mobile users.
The merged entity will be a 50:50 joint venture between the two parent companies, who are promising expanded network coverage, a larger network of own-branded shops, and more investment in "innovative new services".
However, they're also promising more than £3.5 billion of "synergies" across network and IT, distribution and marketing, and other cost savings. What that means in terms of job losses remains to be seen.
Orange UK CEO Tom Alexander will be CEO of the new operator, while T-Mobile UK CEO Richard Moat will take up a role as COO.
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And branding? For 18 months, both T-Mobile UK and Orange UK will continue as separate brands, while the new management team "review branding alternatives for the joint venture".
With a press conference call this morning, more details will undoubtedly emerge. Specifically on the mobile entertainment side, it's too early to gauge how the new venture will develop.
One thing's for sure though: sorting out who does what in the new operator's content team, not to mention its outsourcing partners, will take a fair while.
