Orange and T-Mobile Merger in the UK

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Case Details:

Case Code : BSTR354
Case Length : 14 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Orange UK / T-Mobile UK
Industry : Telecom
Countries : UK

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Telecom Market in The UK

The history of the telecommunications market in the UK dates back to 1879 when the first telephone exchange was set up in England. In 1896, the Post Office in the UK took up the responsibility of operating the private trunk service...

About Orange UK

The history of Orange dates back to the early 1990s when it was set up as a subsidiary of Hutchison Telecommunications International Limited (HTIL), a Hong Kong-based telecommunication service provider, on April 8, 1994...

About T-Mobile UK

The history of T-Mobile dates back to September 1993, when Mercury Communications Limited launched its first Digital Personal Communications Network through its mobile operation, Mercury One2One. In 1997, the mobile operation was rebranded as One2One and the 'pay as you go service' was launched in the UK...

The Rationale for the Merger

T-Mobile was a competitive player in the UK market till 2007 with 17.3 million subscriptions. However, the number of subscriptions fell to 16.8 million in 2008. Even as its performance was deteriorating, other operators such as O2 and 3UK were witnessing an increase in market share...

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