Tuesday, September 8, 2009

Media News Article Review

Sharita Smith

Telc. 445.001

September 9, 2009

Media News Article Review

Orange, T-Mobile to unite in U.K. merger

Orange and T-Mobile are planning to merge their British operations to create the U.K.'s largest mobile carrier. The mobile carrier remains unnamed and will have a combined customer base of about 28.4 million people, or 37 percent of the market, with the deal expected to complete in November. Current Orange chief executive Tom Alexander will be chief executive of the new company, with the current T-Mobile UK chief executive Richard Moat as the chief operating officer. The merger will cost between about $655 million and $983 million. It is expected to save consumers plenty of money by the year 2014. It will remove duplicate base stations and retail outlets, as well as other efficiencies in operational staff and customer support. The status of how this will affect Virgin Mobile is still unclear. Virgin Mobile runs on T-Mobile's network. The deal will still need shareholder approval from both companies and will also have to be cleared by British and European regulators. The U.K. mobile telecommunications market is widely regarded as highly competitive, and no regulatory problems are anticipated.

Due to these major changes taking place in the UK, how will U.S.A. ultimately be affected whether negative or positive?

http://news.cnet.com/8301-1035_3-10346417-94.html

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