Orange and T-Mobile deal, still up in the air
Orange and T-Mobile are still working towards a merger, but the deal may be met with regulatory problems, after the government signed a last minute deal with the leading five wireless networks to help increase access to broadband for all UK citizens by 2012.
The deal is expected to be announced in full detail later this week, and is expected to include an investigation of the EU regulators into the proposed merger of the two large broadband providers.
Many consumer groups have already begun to protest the merger, stating that it would cause a monopoly in the UK with 37% of the market belonging to the merged companies.
If the merger is allowed to continue, the two mobile operators may be forced to sell off some of their combined mobile phone spectrum within Britain to other providers. In the best case scenario for the two companies, the merger would at least be delayed until the investigation ends.
The new deal is expected to include a cap on how much spectrum each major five broadband operator is allowed to own.
Vodafone and O2 will be keep their available spectrum, but a new ?regulatory remedy? is called for in order to prevent T-Mobile and Orange from owning too much of the UK airwaves.
The deal places the responsibility of regulating the cap on the Competition Commission and the OFT.
Under the new terms of the deal each of the networks will be able to expand their 3G licenses over all their spectrum, in exchange for agreeing to spread their high speed mobile broadband coverage areas outside of the city and town areas.
