Mobile network merger may collapse
On Wednesday 3rd February, the Office of Fair Trading (OFT) announced it will investigate the potential merger between Orange and T-Mobile. Competition issues are being questioned and whether it will dominate the UK mobile network sector. I feel this is the right thing to do because I feel it will dominate the market, therefore controlling the sector.
I think this merger could potentially create a price war between T-Mobile Orange and other operators such as O2 and Vodafone. The OFT should think carefully about the competition that will be created, and whether it will be reduced due to the merger.
Therefore, I personally hope the merger does not happen because less competition results in price wars, leading to dominance from T-Mobile Orange. When one company dominates a particular market, it can harm the growth of the sector, resulting in little attraction of new entrants. As a current O2 customer I think it will affect the services O2 can provide me. This is because T-Mobile Orange could attract future deals due to its dominance, and therefore reducing the future perks O2 can offer me.
Below is the link the BBC News article on this story:
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