Proposed Orange-T-Mobile merger centered around iPhone
According to The Daily Telegraph, the merger of Orange and T-Mobile in the U.K. would have 28.4 million customers representing 37 percent of the market. Tom Alexander, chief executive for Orange in Britain, said the additional clout would be an advantage for the company as it looks to have the iPhone on its network.
However, a potential deal between Orange and T-Mobile is far from a foregone conclusion. Any merger would need to be approved by regulators from the European Union, though company officials said they believe it would be accepted.
"We (Orange) are already the network of choice for multimedia devices, weâve already got the biggest 3G network, now with T-Mobile we've got an even stronger 3G network," Alexander said. "Weâve got a fantastic platform and are obviously the network of choice for all multimedia devices, including potential the iPhone in future."
Months ago, rumors suggested the iPhone could be leaving exclusive carrier O2 for the British T-Mobile. That report said that the carrier would gain access to the old model iPhone 3G, while O2 would continue to be the exclusive provider of the iPhone 3GS.
Currently, O2 is the British market leader, with 27 percent of the nation's subscribers. Vodafone is in second with 25 percent, followed by Orange (22 percent) and T-Mobile (15 percent).
As the iPhone continues to expand internationally, exclusive contracts like the one first struck with AT&T have become less common. A recent deal between Apple and China Mobile was non-exclusive. Since the two reached a three-year agreement, rumors have surfaced that Apple has turned its sights to competitor China Mobile, which has more than 475 million subscribers.
In the U.S., the exclusive arrangement between AT&T and Apple is scheduled to expire in 2010. While the wireless carrier has reportedly been negotiating an extension, some have speculated that the iPhone will jump to other domestic carriers.
32 Comments
Two British wireless carriers hope to merge and create the nation's largest network, partially in a bid to grab Apple's attention and earn the right to sell the iPhone..
It doesn't hurt their chances, but Orange UK call centre staff have been hinting at the iPhone being on Orange by the end of this year either way.
Exclusivity helped Apple get traction, but now it's only hindering their expansion. 2nd tier iPhones on other networks would make sense for both parties.
Chalk the merger up to coincidence and market costs - T & O will get the best 3G coverage and a wide range of offers and tariffs. Orange has integrated home broadband, calls and eventually TV on demand too so the joined company becomes more than just a big telecoms company.
Wow, if this is true, it is truly impressive how one (once-) little computer company has managed to create so many ripples in such a mature business (both handset makers and service providers). I can't think of too many parallels......
Sally forth, Orange! It's good time to show to anglo-saxons what iPhone really is and what exactly is the right way to set it up.
Sally forth, Orange! It's good time to show to anglo-saxons what iPhone really is and what exactly is the right way to set it up.
Where's England?
I think it's a little far-fetched to suggest that the iPhone provided motivation for the proposed merger. T-Mobile's UK operation has had a "For Sale" sign up for some time because it is a loss-making division, despite recent multi-million pound advertising campaigns. The proposed joint venture makes sense in many respects from a business viewpoint. It should enable significant cost savings and further investment in building the UK network. Whether it is in the interest of onsumers is something our Office of Fair Trading will investigate. Obviously being a larger player in the market will make it a more attractive carrier for the iPhone, but to suggest the merger has been prompted by a single handset is a gross exaggeration of its importance.