Orange and T-Mobile UK to Merge, Create a Mobile Supergiant September 8th, 2009 | by Stan Schroeder

Two UK mobile carriers, T-Mobile and Orange, plan to merge their businesses in a deal that will cost between $655 and $983 million, creating a supergiant with 28.4 million customers.
The deal, which is due to be signed November, comes on the heels of poor financial results from T-Mobile and lackluster sales from Orange, and the reasons behind it are quite obvious: saving money. Despite the huge initial cost of the merger, the two companies expect to save, over time, up to 5.7 billion dollars. Part of these savings will probably reflect on the combined staff of the two companies: Orange’s 12,500 and T-Mobile’s 6,500 employees, although a spokeswoman said that it’s too early to talk about the impact on the workforce.
As far as branding goes, both brands will remain separate in the first 18 months after the deal is completed. Orange chief executive Tom Alexander will lead the new company, while T-Mobile’s UK boss Richard Moat will become the COO.
The new company will hold around 37% of the mobile market, overtaking O2, which will surely raise suspicion from the competition authorities in the UK and the European Union. As for the users, Orange and T-Mobile promise better coverage and network quality, as well as improved customer service.