What do you get when you mix pink and orange? Deutsche Telekom (NYSE: DT) has sorted the future of its troublesome UK mobile unit T-Mobile by agreeing to wrap it in to a 50/50 JV with France Telecom’s Orange UK, making Britain’s largest network.
The pair, in their joint announcement, say customers will get better network coverage, better quality 2G and 3G services and better customer service through an expanded number of stores
They also say they will be “in a better position to invest in innovative new services and to exploit new technologies” and better able to compete against O2 and Vodafone (NYSE: VOD). “By integrating Orange’s broadband activities, the joint venture will also have the capabilities to offer convergent solutions to its customers in the future.”
Orange UK chief Tom Alexander will lead the JV, new T-Mobile UK CEO Richard Moat will be COO. The combined entity will command 37 percent of UK mobile subs (28.4 million) and will have revenues of