T-Mobile Paints Bright Future With Its Merger With Orange

One of the world's largest GSM network providers inyears, the carrier's merger with France Telecom's
2G and 3G, the Deutsche Telekom owned T-Mobileowned Orange operations in the UK has been officially
has nearly 150 million subscribers worldwide and isannounced last April 1St with an initial confirmation
considered the 7th largest in terms of subscriber baseabout an exclusive negotiation between their
excluding China Mobile. Out of that, around 12 million arerespective parent companies as early as September
UK subscribers and is behind Orange among the UK'sof 2009.
top five mobile phone operators with O2 at the top.The merger is expected to bring significant synergistic
Brief Historybenefits to their operations in the UK after
In July 1992, the largest German telecommunicationconsolidation their respective networks infrastructures
company Deutsche Telekom established the first GSMto attain better economies of scale while allowing
network in the country operating in the 900 MHz range.newer investments in new technologies to be more
A subsidiary for the growing mobile phone marketseconomically feasible given the size of the UK market
was created and was called DeTeMobil.which now stands at around 80 million subscribers
It had products carrying the T prefix starting in 1996.spread over 5 major operators led by BT and
The growing GSM was named T-D1 with anVodafone.
expanding presence in many parts of Europe. TheSome divestments are expected to end redundant
DeTeMobil Company was renamed T-Mobil and innetwork coverage which is expected to be maximized
2002, Deutsche Telekom started consolidating itsto achieve lower unit operating costs. These internal
growing presence in world GMS markets andbenefits are expected to trickle down its combined
anglicized the T-Mobil name to what eventuallysubscriber base with lower tariffs and a more
became known as T-Mobile.streamline operation and better customer service.
In the meantime, a GSM network operating in the 1800The 50-50 merger between T-Mobile and Orange will
MHz territory was established in the UK in 1993 underessentially create UK's leading mobile network
the name Mercury One2One which was thenoperator with a combined subscriber base of 28.4
operated by the erstwhile Mercury Communications.million which would now represent 37% of UK's mobile
The mobile phone network was eventually sold to aphone market. This will supercede UK's leading O2
joint venture company between Cable and Wirelesswhich currently has about 22 million subscribers.
and the US-based Mediaone Group and ended up inBased on the 2008 books of both companies to be
the hands of Deutsch Telekom in 1999. One2One wasmerged, the integration of their broadband activities
rebranded T-Mobile UK in 2002 and grew to becomepoints to a combined baseline revenue of about £7.7
the third largest mobile network carrier in the UK.billion and an EBITDA of £1.7 billion. In addition, the
A Promising Merged Futurenew company is expected to have a net present
After circulating in the rumour mill for more than avalue well over â,¤3.5 billion.